Blue Apron Debut Prompts Potential Lawsuit from Shareholders Claiming Breach of Fiduciary Duty
NEW YORK, NY – After launching an IPO late last month with shares valued significantly below earlier estimates, and with stock prices continuing to decline, Blue Apron may be headed to court for breach of its fiduciary duties to shareholders.
In a press release distributed July 18, Harwood Feffer LLP announced that law firm was “investigating potential claims against the board of directors of Blue Apron Holdings, Inc” including, but not limited to, claims that the company’s “board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the company, and/or committed abuses of control.”
Since a modest one percent jump the day of the offering, Blue Apron’s stock—which launched at $10 per share, just two thirds of its initially estimated value of $15 to $17—has been steadily declining in value. As of the market’s close on Friday, July 21, Blue Apron shares were valued at $6.55.
Some, including news source Reuters, have pointed to the infelicitous timing of the IPO as the reason the meal kit provider’s stock has underperformed. Blue Apron’s IPO launched immediately after Amazon announced plans to acquire Whole Foods, and that announcement resulted in an industry-wide leveling of competitors’ stocks.
Subsequent news that Amazon has filed for its own meal kit trademark may have further complicated Blue Apron’s path forward, though the company's stock prices seem to have stabilized since Tuesday of last week, and shares appear to have made moderate gains in after hours trading this weekend.
Whether Harwood Feffer’s investigations will result in a lawsuit is not yet clear. For more on the situation as it develops, stick with AndNowUKnow.