Tech Crunch reports that Blue Apron is being hit with several proposed class action suits that allege the meal kit company has not been forthcoming about its decision to cut back on advertising, its problems with customer retention, and delays at a new factory in New Jersey.
These suits, the story says, only add the woes that Blue Apron has been facing since the company went public just a couple of months ago. Its stock price has dropped by almost 50 percent since the IPO, largely, it appears, because of the perception that Amazon is threatening its ability to grow both with its own nascent meal kit business and its decision to bid $13.7 billion to acquire Whole Foods.
To be clear, the story also notes that the lawyers proposing these class actions and making charges are still seeking actual plaintiffs.
These suits, the story says, only add the woes that Blue Apron has been facing since the company went public just a couple of months ago. Its stock price has dropped by almost 50 percent since the IPO, largely, it appears, because of the perception that Amazon is threatening its ability to grow both with its own nascent meal kit business and its decision to bid $13.7 billion to acquire Whole Foods.
To be clear, the story also notes that the lawyers proposing these class actions and making charges are still seeking actual plaintiffs.
- KC's View:
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Sounds like the vultures are circling, though that doesn’t necessarily mean that Blue Apron hasn’t been entirely forthcoming as it grapples with severely diminished expectations.
