Crocs(CROX) Prnewswire·2025-02-21 21:45Core Viewpoint - A securities fraud class action lawsuit has been filed against Crocs, Inc. for misleading investors regarding the sustainability of revenue growth from its HEYDUDE acquisition, which significantly impacted the company's stock price during the class period [1][3][4]. Group 1: Lawsuit Details - The lawsuit was filed on behalf of investors who acquired Crocs common stock between November 3, 2022, and October 28, 2024 [1]. - Investors have until March 24, 2025, to move the Court to serve as lead plaintiff for the class [2][10]. Group 2: HEYDUDE Acquisition and Revenue Misrepresentation - Crocs acquired HEYDUDE in February 2022, and it accounted for approximately 25% of the company's total revenues in 2022 [2]. - The revenue growth from HEYDUDE was largely due to Crocs' strategy of overstocking third-party wholesalers, which was not reflective of actual retail demand [3][8]. Group 3: Impact on Stock Price - On April 27, 2023, Crocs' stock price fell nearly 16% after disclosures revealed that HEYDUDE's revenue growth was not indicative of actual sales [4]. - Subsequent disclosures in June and July 2023 further revealed intentional overstocking, leading to additional declines in stock price [5]. - On November 2, 2023, Crocs reported a 19.4% decline in HEYDUDE's wholesale revenues, resulting in a further drop of over 5% in stock price [6][7]. Group 4: Ongoing Misleading Information - Throughout the class period, Crocs continued to downplay the negative impact of overstocking and waning product demand on financial results [8]. - On October 29, 2024, Crocs disclosed that HEYDUDE revenues fell below expectations, leading to a significant stock price decline of approximately 19.2% [9].