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  "documentTitle": "FIGS, Inc. (FIGS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-07 00:00:00",
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  "notes": "The slide serves as a summary of legal and ethical grievances against the company.",
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      "text": "Finally, SPI alleges that FIGS has misrepresented the extent of its philanthropic activities.",
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      "text": "Of note, SPI also alleges that FIGS misrepresented the membership of its advisory board in its investor pitch materials.",
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      "text": "An SPI expert gave sworn testimony that FIGS scrubs contain insignificant amounts of silver and cannot kill bacteria “on contact”.",
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      "text": "At the very least, Spear's actions seem to be a clear violation of the Blackstone code of ethics.",
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      "text": "Customer inquiries to FIGS clearly indicate concern and a desire to better understand FIGS products' protective capabilities, which FIGS repeatedly responded to with its standard marketing spin.",
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      "text": "Most importantly, FIGS ultimately retracted these statements and removed them from its key marketing messages. Tellingly, these retractions came after FIGS hired its first General Counsel.",
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      "text": "FIGS product promotional materials claimed that FIGS scrubs contained special materials (SILVADUR™) with antimicrobial properties that killed bacteria “on contact”. SPI claims, and we believe the evidence presented supports, that FIGS exaggerated this claim.",
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      "text": "While the question of whether Spear's actions violated the California Uniform Trade Secrets Act (CUTSA) remains outstanding, there are multiple interviews in which Spear definitively acknowledges taking the SPI materials from Blackstone and sending them to Hasson.",
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      "text": "Additionally, FIGS adopted a generic (and highly questionable) claim regarding the health benefits of scrubs, that their use can reduce hospital infections by 66%, as a key FIGS product attribute.",
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      "text": "SPI has also claimed that Spear used confidential materials obtained while employed at Blackstone (an SPI creditor) to assist in her efforts to form FIGS, a claim that Spear has denied.",
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      "text": "In 2019, Strategic Partners (SPI), the largest incumbent scrubs supplier, filed a lawsuit against FIGS alleging the Company made a number of false and misleading claims.",
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      "text": "We Believe The Allegations Made Against FIGS And Its Management To Be Compelling",
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