New York, New York–(Newsfile Corp. – January 26, 2025) – Leading securities law firm Bleichmar Fonti & Auld LLP announces that a case has been filed against Crocs Inc. (NASDAQ: NASDAQ: ) and certain of the Company’s senior executives for potential violations of federal securities laws.

If you’ve invested in Crocs, you’re in for a treat get more information by visiting https://www.bfalaw.com/cases-investigations/crocs-inc.

Investors have until March 24, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for investors who purchased Crocs’ common stock. The case is pending in the US District Court for the District of Delaware and is captioned Carretta v. Crocs, Inc., and others.No. 25-cv-00096.

Why was Crocs Sued for Securities Fraud?

Crocs is a casual lifestyle shoe brand. In February 2022, the Company completed the acquisition of HEYDUDE, a footwear brand that focuses on casual, comfortable, and lightweight footwear. As noted, Crocs CEO Andrew Rees assured investors that Crocs will not “play the game of forcing (wholesalers’) inventory and overstocking it.”

However, in fact, it is said that HEYDUDE’s revenue growth for 2022 is driven, in large part, by Crocs’ efforts to aggressively stock its third-party wholesaler pipeline with HEYDUDE products, even what is the level of retail demand experienced by wholesalers.

The Stock Drops as the Truth Is Revealed

On April 27, 2023, the Company revealed that most of HEYDUDE’s revenue growth in 2022 was due to the Company’s wholesale partners’ stocking efforts of HEYDUDE products and was not necessarily indicative of actual downstream sales. retail. On this news, the price of Crocs common stock decreased $23.46 per share, or nearly 16%, from $147.78 per share on April 26, 2023, to $124.32 per share on April 27, 2023.

Subsequently, on October 29, 2024, the Company reported disappointing financial results for the third quarter of 2024 due to the continued struggles of HEYDUDE. Crocs attributed the struggles to “excessive inventories in the market” and admitted that “if you think about this kind of (20)22 to (20)23 timeframe, in retrospect, we absolutely shipped a lot product (),” which is called that decision. “wrong” and emphasized that the lack of demand for the product is exacerbating the issue. On this news, Crocs stock price decreased $26.47 per share, or approximately 19%, from $138.05 per share on October 28, 2024, to $111.58 per share on October 29, 2024.

Click here if you lost: https://www.bfalaw.com/cases-investigations/crocs-inc.

What Can You Do?

If you invest in Crocs you may have legal options and are encouraged to submit your information to the company.

All representation is on a contingency fee basis, at no cost to you. Shareholders are not responsible for any court costs or litigation costs. The company will seek court approval for any potential fees and costs.

Submit your information by visiting:

https://www.bfalaw.com/cases-investigations/crocs-inc

Why Bleichmar Fonti & Auld LLP?

Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys were named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among recent notable achievements, BFA has recovered over $900 million in equity from Tesla (NASDAQ: ), Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical (NYSE: ) Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases-investigations/crocs-inc

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To view the original version of this press release, please visit https://www.newsfilecorp.com/release/238324