More bad news for Blue Apron: Following an IPO that fell far short of expectations, the pioneering meal kit company has now been slapped with at least four different lawsuits from investors who are none too pleased with the stock’s performance, Grub Street reports.
One of the class-action suits filed last week in New York by the law firm Bragar Eagel & Squire claims that Blue Apron failed to disclose important information to potential investors in its pre-IPO SEC filing, including that the company had cut back its advertising budget; that it was having trouble getting its boxes delivered to customers on time and containing all the promised ingredients; and that it was having issues at its factory in New Jersey that was causing orders to be delayed. (The other suits all make similar claims.)
To emerge victorious in such a suit, lawyers will have to prove that had potential investors known these things, they wouldn’t have invested in Blue Apron and subsequently lost money. Blue Apron’s stock initially hit the market at $10 per share and is currently trading at $5.25, meaning it’s fallen by more than 47 percent.