Stitch Fix Securities Class Action Settlement

Who Was Eligible?

Who the settlement covered:

• The class is every person and entity that bought or otherwise acquired Stitch Fix common stock between 9 June 2020 and 9 June 2022 inclusive, and was damaged as a result.
• Common stock is the whole of it. Option contracts are not eligible securities. Short sales are assigned a recognized loss of zero, and an opening short position has to be fully covered before any later purchase counts.
• Holding matters more than buying. A share only earns a recognized loss if it was still held through at least one of the four corrective disclosures, on 8 March 2021, 7 December 2021, 8 March 2022 or 9 June 2022.
• Your whole class-period trading is netted. If you came out ahead across all of it, your claim is zero no matter what individual lots show, and if your overall market loss is smaller than the calculated claim, the loss caps it.
• Shares held in a Stitch Fix employee retirement plan must be left off your own form. Those are claimed by the plan's trustees, and only shares bought outside the plan belong on an individual claim.
• One practical warning from the notice itself. Neither the parties nor the administrator holds any record of your trades. Nobody is going to look you up, which is why the documentation burden falls entirely on you.
• The case turns on a product line called Direct Buy, and whether executives described it honestly as additive and incremental to the Fix, the box of five clothing items picked by a stylist that was the core business. Stitch Fix denies all of it.

How Much Did It Pay?

The fund is $32,000,000. The notice estimates the average recovery at about $0.17 per eligible share before deductions, and roughly $0.04 a share if the court grants the maximum fees and expenses sought. That leaves something near $0.13.

Those are averages across every eligible share, not promises. The notice says so directly: some class members will recover more per share and some less, depending on when they bought, whether they sold, how many valid claims arrive and what the court awards.

The deduction request is up to 25% of the fund for attorneys' fees, plus litigation expenses capped at $300,000. Lead Counsel filed that motion on 23 July 2026 and it is posted on the settlement website, so the numbers are checkable rather than theoretical.

Your own recognized loss starts from the alleged artificial inflation in the share price on the day you bought, minus the inflation on the day you sold. Federal law then caps it. Sell in the 90 days after 9 June 2022 and the figure is tested against the average closing price from 10 June 2022 to your sale date, a window whose full-period mean came out at $6.00. Shares you were still holding at the close on 7 September 2022 are measured against that same $6.00.

A second number, $6.34, does a different job entirely, and mixing the two is easy. That is the holding value the administrator assigns to any class-period share you still owned at the close on 9 June 2022, and it feeds only the test of whether your overall trading was a gain or a loss. Come out ahead on that test and your claim is zero, whatever the individual lots look like.

Two thresholds are worth knowing before you spend an evening on this. Purchases and sales are matched first in, first out, against whatever you already held on 9 June 2020. And if your calculated distribution comes out below $10, nothing is paid and the money goes to the claimants above that line.

How this claim was filed

This settlement is closed, so the steps below are kept for reference only — they no longer lead anywhere you can file.

• Pull your brokerage records before anything else. You need every Stitch Fix common stock transaction between 9 June 2020 and 9 June 2022, with dates, share counts and prices, plus whatever you already held at the opening of trading on 9 June 2020. Trade dates govern, not settlement dates.
• Remember that nobody can do this part for you. The notice states that the parties and the administrator hold no information about your transactions, so a claim without documentation simply fails.
• File at stitchfixsecuritieslitigation.com, either online or by downloading the form and posting it. A.B. Data administers the settlement and will send you a form if you ring 877-719-7072 or email info@StitchFixSecuritiesLitigation.com.
• Everything must be postmarked or submitted online by 7 October 2026. Exclusion and objection closed earlier, both on 27 August 2026, so claiming or doing nothing are the only options left. Doing nothing still binds you to the release.
• The settlement hearing is listed for 24 September 2026 before Judge P. Casey Pitts in San Jose. Note a discrepancy worth checking: the court-approved notice gives the time as 10:00 a.m. Pacific while the settlement website says 11:00 a.m. The notice warns the date and time can change without further notice, so confirm on the site if you plan to attend.
• Payment will take a while. Money moves only after the court approves both the settlement and a plan of allocation, after any appeals finish, and after every claim has been processed.

Frequently Asked Questions