Stitch Fix $32 Million Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

July 1, 2026 3:37 PM

Updated

July 1, 2026

Who can file a claim?

The settlement class includes all persons and entities who purchased or otherwise acquired Stitch Fix common stock between June 9, 2020, and June 9, 2022, inclusive, and suffered damages as a result.

Additional details

Both individuals and entities can be class members.
Each separate legal entity or separately managed account must submit a separate claim.
Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
Participants in and beneficiaries of a Stitch Fix employee benefit plan covered by the Employee Retirement Income Security Act of 1974 should not include transactions made through the plan on an individual claim form. Plan trustees may submit claims for those employee plan transactions.

How much can class members get?

The total settlement fund is $32,000,000. The amount each class member receives depends on several factors:

The number of valid claims submitted
The number of shares purchased or acquired during the class period
The timing of each purchase, sale and holding
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $0.17 per eligible share before deductions for taxes, notice and administration costs, and attorneys' fees and expenses.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
Recognized loss amounts depend on the timing of each purchase and sale and the estimated artificial inflation per share during the relevant periods (see Table A on Page 14 of the settlement notice). The settlement administrator will calculate them using the court-approved plan of allocation.

For shares purchased Dec. 8, 2020, through June 9, 2022, and sold before the close of trading March 8, 2021, the recognized loss is $0.
For shares sold from March 9, 2021, through the close of trading June 9, 2022, the recognized loss is the lesser of the artificial inflation per share at purchase minus the artificial inflation per share at sale or the purchase price minus the sale price.
For shares sold from June 10, 2022, through the close of trading Sept. 7, 2022, the recognized loss is the least of the artificial inflation per share at purchase, the purchase price minus the average closing price from June 10, 2022, through the sale date (see Table B on Page 14 of the settlement notice) or the purchase price minus the sale price.
For shares held as of the close of trading Sept. 7, 2022, the recognized loss is the lesser of the artificial inflation per share at purchase or the purchase price minus $6.
For shares purchased June 9, 2020, through Dec. 7, 2020, the settlement administrator applies the same formulas but reduces the recognized loss to 10% of the calculated amount, reflecting the court's dismissal of claims for that period.

The settlement administrator will set any recognized loss that calculates to a negative number or zero to $0.
If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout but will still be bound by the settlement.

How to claim a Stitch Fix securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Oct. 7, 2026.

Settlement administrator's mailing address: Stitch Fix Securities Litigation, c/o A.B. Data Ltd., P.O. Box 173030, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holding and transaction information, including:

Number of shares held as of the close of trading June 8, 2020
Trade dates for purchases and acquisitions from June 9, 2020, through June 9, 2022, and for sales through Sept. 7, 2022
Number of shares and total price for each purchase, acquisition or sale
Number of shares held as of the close of trading Sept. 7, 2022

Class members must also provide documentation to support their holdings and transactions in Stitch Fix common stock. Acceptable proof includes:

Trade confirmations
Monthly account statements
Authorized statements from a broker or financial institution containing the transactional and holding information found in a trade confirmation or account statement

Payout options

Physical check

$32 million settlement fund

The $32,000,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $8,000,000
Attorneys' expenses: Up to $300,000
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: Aug. 27, 2026
Fairness hearing: Sept. 24, 2026
Deadline to file a claim: Oct. 7, 2026

When is the Stitch Fix securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after it completes claims processing and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Stitch Fix and two former chief executive officers made materially false and misleading statements about the company's direct buy business line and whether it was additive, incremental and complementary to the company's core business. The plaintiffs claimed these statements inflated Stitch Fix's stock price and caused investor losses when the truth reached the market.

Stitch Fix denied all allegations of wrongdoing but agreed to settle to avoid the burden, expense, uncertainty, risk and distraction of continued litigation.