Case Summary
Crocs
NASDAQ: CROX
Case Details
- Carretta v. Crocs, Inc. et al.
- Class Period:November 3, 2022 - October 28, 2024
- Date Filed:January 22, 2025
- Jurisdiction:U.S. District Court, District of Delaware
- Docket Number: 1:25-cv-00096
- Lead Plaintiff Deadline: March 24, 2025
Seek Plaintiff 44
Overview
A class action lawsuit has been filed against Crocs, Inc. (“Crocs” or the “Company”) (NASDAQ: CROX) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws. The Crocs class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Crocs common stock between November 3, 2022, and October 28, 2024, both dates inclusive (the “Class Period”). Investors have until March 24, 2025, to seek appointment as lead plaintiff in the Crocs class action lawsuit.
Crocs, a Delaware corporation with its principal executive offices in Broomfield, Colorado, is a casual lifestyle footwear brand. In February 2022, Crocs completed its acquisition of HEYDUDE, a footwear brand focusing on casual, comfortable, and lightweight footwear. As is relevant here, the Company reports HEYDUDE sales in two segments: direct-to-consumer sales; and wholesale sales (which include sales to major retailers). Despite the fact that HEYDUDE was only acquired by Crocs in mid-February 2022, HEYDUDE accounted for approximately 25% of the Company’s total revenues in 2022.
The Crocs class action lawsuit alleges that Defendants, throughout the Class Period, misled investors by concealing the fact that the strong revenue growth exhibited by the Company’s HEYDUDE brand following its acquisition in February 2022, was largely driven by a conscious decision on the part of Crocs management to aggressively stock its third-party wholesaler pipeline with HEYDUDE products, regardless of the level of retail demand being experienced by those wholesalers. Defendants pursued this overstocking strategy despite assurances to investors by Defendant Andrew Rees, the Company’s Chief Executive Officer, that Crocs would not play the game of forcing inventory into wholesalers and getting them overstocked. As a result, unbeknownst to investors, the Company reported HEYDUDE revenue numbers in 2022 that were not indicative of actual retail demand for HEYDUDE shoes and, over the longer term, were entirely unsustainable. Moreover, after the Company’s retail partners began to destock this excess inventory, Defendants further misled investors by concealing that waning product demand for HEYDUDE shoes would further impact the Company’s financial results.
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If you purchased or otherwise acquired Crocs common stock between November 3, 2022, and October 28, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected].
The deadline to apply to the Court to serve as lead plaintiff in the Crocs class action lawsuit is March 24, 2025.