From The Bear Cave:

Spruce Point Capital published on Figs Inc (NYSE: FIGS — $1.99 billion), a company that makes fashionable medical scrubs. In its 113-slide report, Spruce Point alleged the company has “a pattern of exaggerating key business and financial claims.” For example, the company claims to have a ~$12 billion total addressable market, but Spruce Point estimates its total addressable market is only ~$5 billion. Spruce Point also said it “believes FIGS was a COVID-19 beneficiary that will fail to sustain momentum due to demand normalization and increasing competition.” In addition, Spruce Point published concerning comments by former Figs Inc employees:

“There is just something that is off about the place… Unethical is a word I'd use to describe the actions here.”

“It’s a culture of fear …”

“With my insight into leadership, it's easy to see rampant favoritism, unethical behavior and excessive micromanaging starting at the top with founders.”

“Understand that the founders will stop at nothing to succeed and that means lying to press, vendors, employees and Glassdoor.”

“I would say that if there is a number where there's an opportunity to kind of be aggressive with something, they probably will be.”