Investigations
Crocs, Inc.
Overview
Overview
- Deadline:
- Mar 24, 2025
| Company Name: | Company Name: Crocs, Inc. |
| Stock Symbol: | Stock Symbol: CROX |
Crocs, Inc. (NASDAQ: CROX): Crocs, Inc. (“Crocs” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Crocs common stock. The case is pending in the U.S. District Court for the District of Delaware and is captioned Carretta v. Crocs, Inc., et al., No. 25-cv-00096.
If you incurred losses on your investments in Crocs, you are encouraged to submit your information.
Why was Crocs Sued for Securities Fraud?
Crocs is a casual lifestyle footwear brand. In February 2022, the Company completed its acquisition of HEYDUDE, a footwear brand focusing on casual, comfortable, and lightweight footwear. As alleged, Crocs’s CEO, Andrew Rees, assured investors that Crocs would not “play the game of forcing inventory into [wholesalers] and getting them overstocked.”
However, in truth, it is alleged that HEYDUDE’s revenue growth for 2022 was driven, in large part, by Crocs’s efforts to aggressively stock its third-party wholesaler pipeline with HEYDUDE products, regardless of the level of retail demand being experienced by those wholesalers.
The Stock Declines as the Truth is Revealed
On April 27, 2023, the Company revealed that much of HEYDUDE’s revenue growth in 2022 was attributable to efforts to stock the Company’s wholesale partners with HEYDUDE products and was not necessarily indicative of actual downstream retail sales. On this news, the price of Crocs common stock declined $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.
Three months later, on July 27, 2023, Crocs allegedly disclosed that its deliberate overstocking accounted for approximately $220 million of HEYDUDE’s $896 million in revenue for the period following the closing of the acquisition. This news caused the price of Crocs stock to drop $17.50 per share, or nearly 15%, from $119.80 per share on July 26, 2023, to $102.30 per share on July 27, 2023.
On August 16, 2023, Williams Trading LLC significantly reduced its price target on Crocs given elevated HEYDUDE inventory levels at approved retailers and the “overabundance” of HEYDUDE products on Amazon.com at below suggested retail price. On this news, the price of Crocs stock declined $3.79 per share, or nearly 4%, from $97.80 per share on August 15, 2023, to $94.01 per share on August 16, 2023.
On November 2, 2023, Crocs announced disappointing financial results for the third quarter of 2023 and cut its 2023 HEYDUDE revenue growth guidance given that HEYDUDE “inventory was too high” and the Company “is proactively lowering in-channel inventories.” On this news, the price of Crocs stock declined $4.62 per share, or more than 5%, from $87.41 per share on November 1, 2023, to $82.79 per share on November 2, 2023.
Finally, on October 29, 2024, the Company reported disappointing financial results for the third quarter of 2024 given continued struggles at HEYDUDE. Crocs attributed the struggles to “excess inventories in the market” and admitted that “if you think about this sort of [20]22 into [20]23 timeframe, in retrospect, we absolutely shipped too much product[],” calling that decision “wrong” and highlighting that a lack of product demand exacerbated the issue. On this news, the price of Crocs stock declined $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.
What are my Rights?
If you invested in Crocs, you may ask the Court no later than March 24, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Crocs, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA 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 have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in Crocs, you are encouraged to submit your information.
Why was Crocs Sued for Securities Fraud?
Crocs is a casual lifestyle footwear brand. In February 2022, the Company completed its acquisition of HEYDUDE, a footwear brand focusing on casual, comfortable, and lightweight footwear. As alleged, Crocs’s CEO, Andrew Rees, assured investors that Crocs would not “play the game of forcing inventory into [wholesalers] and getting them overstocked.”
However, in truth, it is alleged that HEYDUDE’s revenue growth for 2022 was driven, in large part, by Crocs’s efforts to aggressively stock its third-party wholesaler pipeline with HEYDUDE products, regardless of the level of retail demand being experienced by those wholesalers.
The Stock Declines as the Truth is Revealed
On April 27, 2023, the Company revealed that much of HEYDUDE’s revenue growth in 2022 was attributable to efforts to stock the Company’s wholesale partners with HEYDUDE products and was not necessarily indicative of actual downstream retail sales. On this news, the price of Crocs common stock declined $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.
Three months later, on July 27, 2023, Crocs allegedly disclosed that its deliberate overstocking accounted for approximately $220 million of HEYDUDE’s $896 million in revenue for the period following the closing of the acquisition. This news caused the price of Crocs stock to drop $17.50 per share, or nearly 15%, from $119.80 per share on July 26, 2023, to $102.30 per share on July 27, 2023.
On August 16, 2023, Williams Trading LLC significantly reduced its price target on Crocs given elevated HEYDUDE inventory levels at approved retailers and the “overabundance” of HEYDUDE products on Amazon.com at below suggested retail price. On this news, the price of Crocs stock declined $3.79 per share, or nearly 4%, from $97.80 per share on August 15, 2023, to $94.01 per share on August 16, 2023.
On November 2, 2023, Crocs announced disappointing financial results for the third quarter of 2023 and cut its 2023 HEYDUDE revenue growth guidance given that HEYDUDE “inventory was too high” and the Company “is proactively lowering in-channel inventories.” On this news, the price of Crocs stock declined $4.62 per share, or more than 5%, from $87.41 per share on November 1, 2023, to $82.79 per share on November 2, 2023.
Finally, on October 29, 2024, the Company reported disappointing financial results for the third quarter of 2024 given continued struggles at HEYDUDE. Crocs attributed the struggles to “excess inventories in the market” and admitted that “if you think about this sort of [20]22 into [20]23 timeframe, in retrospect, we absolutely shipped too much product[],” calling that decision “wrong” and highlighting that a lack of product demand exacerbated the issue. On this news, the price of Crocs stock declined $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.
What are my Rights?
If you invested in Crocs, you may ask the Court no later than March 24, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Crocs, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA 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 have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.