⚖ Oral Arguments, with Context

The Ninth Circuit reviews the dismissal of investor claims arising from Figs's 2021 initial and secondary stock offerings. The offering documents said the medical-apparel company used real-time customer data to reliably predict buying patterns and improve inventory decisions. The investors say former employees showed that Figs instead relied on basic, ad hoc systems that could not do what the company claimed. They sue under Sections 11 and 12 of the Securities Act, which cover material falsehoods in registration statements and prospectuses without requiring proof of intent to defraud. The investors will argue that ordinary Rule 8 pleading applies and that their witnesses supplied enough detail. Figs and the other defendants will argue that the complaint reused the same facts as separate fraud claims, so Rule 9(b)'s stricter standard applies, and that the witnesses lacked timely, firsthand support. Tulco will separately argue that large ownership and one board seat do not make it liable for others' statements.

Hoch v. Figs, Inc. (No. 25-902) — U.S. Court of Appeals for the Ninth Circuit, argued July 7, 2026.