Stitch Fix Wins Dismissal of Investor Suit Over ‘Direct Buy’ (2024)

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July 17, 2024, 2:43 PM UTC

By Matthew Bultman

Stitch Fix Wins Dismissal of Investor Suit Over ‘Direct Buy’ (5)

Matthew Bultman

Reporter

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Stitch Fix | Your Personal Stylist

A federal judge dismissed a lawsuit against Stitch Fix Inc. brought by investors who allege the personal styling platform’s leaders misled them about the impact of a new business line.

Stitch Fix, known for its curated subscription boxes, in 2021 launched “direct buy,” allowing customers to shop directly on the company’s website for clothes.

While Stitch Fix founder Katrina Lake and former CEO Elizabeth Spaulding pitched the direct purchase option as complementary to the subscription business, referred to as “Fix,” investors said internal test results showed it would cannibalize the Fix business.

But investors haven’t shown the executives made false ...

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Stitch Fix Wins Dismissal of Investor Suit Over ‘Direct Buy’ (2024)
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