Embattled etailer Surfstitch is facing a $100 million class action by shareholders.
Law firm Quinn Emanuel has filed the class action in the Supreme Court of Queensland.
It concerns shareholders who purchased or held shares between August 27, 2015 and June 8, 2016.
The law firm alleges Surfstitch failed to disclose it was trading at a loss in August, 2015.
It alleges this was covered up with a series of transactions to boost revenue and a misleading 2015/16 earnings guidance of $15 million to $18 million.
In August 2016, Surfstitch reported a loss of $18.8 million.
Surfstitch has confirmed it expects losses to double this year, with its US office also set to close.