The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Allbirds, Inc. (BIRD) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Allbirds, Inc. (“Allbirds” or the “Company”) (NASDAQ: BIRD) investors who purchased: (a) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s November 2021 initial public offering (“IPO” or the “Offering”); and/or (b) securities between November 4, 2021 and March 9, 2023, inclusive (the “Class Period”). Allbirds investors have until June 12, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In November 2021, Allbirds conducted its IPO, selling approximately 16,850,799 shares of Class A common stock at $15.00 per share.

On March 9, 2023, after the market closed, the Company issued a press release announcing a fourth quarter 2022 net loss of $24.9 million and a full year 2022 net loss of $101.4 million. The Company also announced a full year 2022 adjusted EBITDA loss of $60.4 million, which was higher than the guidance target that estimated an adjusted EBITDA loss of $42.5 million to $37.5 million. Allbirds also disclosed in the press release that, in response to these negative results, it created a “strategic transformation plan to reignite growth, improve costs and capital efficiency, and drive profitability.” The plan purportedly focused on four areas: reigniting product and brand, optimizing U.S. stores and slowing the pace of openings, evaluating transition of international go-to-market strategy, and improving cost savings and capital efficiency.

Also on March 9, 2023, after the market closed, Allbirds announced that its Chief Financial Officer was stepping down.

The same day, March 9, 2023, the Company held a conference call with analysts to discuss its fourth quarter 2022 results. On the call, Defendant Joseph Zwillinger, the Company’s Co-CEO, explained that Allbirds’ poor results were driven in part by the fact that Allbirds “overemphasized products that extended beyond our core DNA.” As a result, he explained, “some products and colors have had narrower appeal than expected” and “[b]ecause we were spending significant time and resources on these new products that did not resonate well, we underinvested in our core consumers’ favorite products.”

On this news, the Company’s stock price fell $1.11, or 47%, to close at $1.25 per share on March 10, 2023, thereby injuring investors.

By the commencement of this action, the Company’s stock price had closed as low as $1.06 per share, a 92.9% decline from the Company’s $15.00 per share IPO price.

The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Allbirds was overemphasizing products that extended beyond the Company’s core offerings; (2) that the Company’s non-core products had a narrower appeal and were not resonating with customers as well as the Company’s core products; (3) that Allbirds was underinvesting in its core consumers’ favorite products to push the Company’s newer products with narrower appeal; (4) that underinvesting in Allbirds’ core products was negatively impacting the Company’s sales; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Allbirds securities during the Class Period, you may move the Court no later than June 12, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Allbirds securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230420005023/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Allbirds, Inc. (BIRD) Investors