Crocs(CROX) Prnewswire·2025-03-06 00:15Core Viewpoint - A securities fraud class action lawsuit has been filed against Crocs, Inc. for misleading investors regarding the sustainability of revenue growth from its HEYDUDE acquisition, which significantly impacted the company's stock price [1][3][4]. Group 1: Lawsuit Details - The lawsuit was filed by Kessler Topaz Meltzer & Check, LLP on behalf of investors who acquired Crocs common stock between November 3, 2022, and October 28, 2024 [1]. - Investors have until March 24, 2025, to move the Court to serve as lead plaintiff for the class [2][8]. - The case is titled Carretta v. Crocs, Inc., et al., and was filed in the United States District Court for the District of Delaware [1]. Group 2: HEYDUDE Acquisition and Revenue Misrepresentation - Crocs acquired HEYDUDE in February 2022, and HEYDUDE accounted for approximately 25% of Crocs' total revenues in 2022 [2]. - The revenue growth from HEYDUDE was largely due to Crocs' strategy of overstocking third-party wholesalers, which misled investors about actual retail demand [3][5]. - CEO Andrew Rees had previously assured investors that Crocs would not engage in overstocking practices, contradicting the company's actions [3]. Group 3: Impact on Stock Price - On April 27, 2023, after revealing the unsustainable nature of HEYDUDE's revenue growth, Crocs' stock price fell by 147.78 to 26.47, or approximately 19.2%, from 111.58 per share [6][7].