Class action lawsuits stewing for Blue Apron cooking kit business
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Several lawsuits are alleging that Blue Apron meal prep and delivery service’s business model is missing one key ingredient: honesty.
The New York-based company has seen its share price chopped in half since its initial public offering in June, incensing those who bought stock, according to the news site Techcrunch.com.
Now law firms are coming after the company with proposed class-action lawsuits, alleging that Blue Apron failed to adequately disclose material information, the website says, urging readers to Google the lawsuits. There are several of them.
Chief among the allegations are that Blue Apron misrepresented its challenges with customer retention, delayed orders and reduced ad spend.
The New York law firm Bragar Eagel and Squire P.C. summed it up: “1) Blue Apron had decided to significantly reduce spending on advertising in Q2 2017, hurting sales and profit margins in future quarters; (2) Blue Apron was experiencing difficulty with customer retention due to orders not arriving on time or with all expected ingredients; and (3) the company was experiencing delayed orders in Q2 2017 related to its new factory in Linden, New Jersey.”
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