checkAd

Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Rent the Runway, Inc. (RENT) Investors and Encourages Investors to Contact the Firm Before January 13, 2023

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Rent the Runway, Inc. (“Rent the Runway” or the “Company”) (NASDAQ: RENT) securities pursuant and/or traceable to the Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with Rent the Runway’s October 27, 2021 initial public offering (“IPO”); and/or (b) that purchased or otherwise acquired Rent the Runway securities between October 24, 2021 through November 14, 2022 (the “Class Period”). Investors have until January 13, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Rent the Runway is an online e-commerce website that allows women to rent designer apparel and accessories.

On October 27, 2021, Rent the Runway conducted its initial public offering (“IPO”), selling 17 million shares at $21.00 per share.

In the months leading up to the IPO, Rent the Runway claimed that it was experiencing a business resurgence as concerns about the COVID-19 pandemic lessened, lockdown orders ceased, and its customers engaged in more social outings.

The lawsuit alleges that the Registration Statement was false and/or misleading and/or failed to disclose that: (i) Rent the Runway was continuing to face extraordinary business headwinds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic; (ii) Rent the Runway’s active subscriber enrollments had sharply decelerated from the growth trajectory represented in the offering documents and, as a result, Rent the Runway was several months away from approaching its pre-pandemic levels of active subscriptions; (iii) Rent the Runway needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network; (iv) Rent the Runway was suffering from ballooning fulfillment and transportation costs; and (v) as a result, Rent the Runway was suffering accelerating operational losses at the time of the IPO and was far less likely to achieve profitability in the near term, if ever, than represented.

By October 2022, the price of Rent the Runway Class A common stock had fallen below $2 per share, 90% below the price at which Rent the Runway common stock had been sold to the investing public less than one year prior.

If you purchased or otherwise acquired Rent the Runway securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.


The Rent the Runway Stock currently trades with a raise of +3,97 % to 1,310USD on the Nasdaq stock exchange.

Wertpapier



0 Kommentare
Nachrichtenquelle: Business Wire (engl.)
 |  159   |   |   

Schreibe Deinen Kommentar

Disclaimer

Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Rent the Runway, Inc. (RENT) Investors and Encourages Investors to Contact the Firm Before January 13, 2023 The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Rent the Runway, Inc. (“Rent the Runway” or the “Company”) …

Nachrichten des Autors

344 Leser
292 Leser
288 Leser
184 Leser
176 Leser
156 Leser
152 Leser
148 Leser
144 Leser
144 Leser
840 Leser
800 Leser
624 Leser
528 Leser
512 Leser
460 Leser
456 Leser
424 Leser
404 Leser
392 Leser
3236 Leser
2100 Leser
1780 Leser
1688 Leser
1604 Leser
1192 Leser
1052 Leser
884 Leser
852 Leser
848 Leser
7528 Leser
3236 Leser
3085 Leser
2934 Leser
2501 Leser
2464 Leser
2370 Leser
2169 Leser
2106 Leser
2100 Leser