MILWAUKEE, Nov. 10, 2021 /PRNewswire/ -- Ademi LLP is investigating possible securities fraud claims against Purple Innovation (NASDAQ: PRPL). The investigation results from inaccurate statements Purple Innovation may have made regarding its business operations and prospects.
The investigation focuses on whether Purple Innovation properly disclosed (i) its earlier announced wholesale expansion, (ii) the re-acceleration of its existing wholesale door productivity, (iii) the effect of its marketing spending on Purple Innovation's digital business, and (iv) its ability to control its pricing and cost management. On November 9, 2021, Purple Innovation announced disappointing third quarter earnings "largely driven by impacts from our manufacturing backlog that were longer-lasting than we anticipated. Our lack of inventory impacted sales through all of our channels which are deeply interconnected." On this new Purple Innovation's stock fell nearly 25%.