Class Action Reminder

Kessler Topaz Meltzer & Check, LLP Reminds Rent the Runway, Inc. Investors of Securities Fraud Class Action Lawsuit

The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Rent the Runway, Inc. (“Rent the Runway”) (NASDAQ: RENT). The action charges Rent the Runway with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Rent the Runway's materially misleading statements and omissions to the public, Rent the Runway’s investors have suffered significant losses.

CLICK HERE TO SUBMIT YOUR RENT THE RUNWAY LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/rent-the-runway-inc?utm_source=PR&u ...

TO VIEW OUR VIDEO, PLEASE CLICK HERE

LEAD PLAINTIFF DEADLINE: JANUARY 13, 2023

CLASS PERIOD: OCTOBER 27, 2021 THROUGH NOVEMBER 14, 2022

CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at [phone] or via email at [e-mail]

Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.

RENT THE RUNWAY’S ALLEGED MISCONDUCT
On October 27, 2021, Rent the Runway conducted its 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.

Then, just one month after the IPO, on December 8, 2021, Rent the Runway revealed that for the quarter that ended on October 31, 2021 - just days after the IPO – the company reported nearly double its loss of the prior year quarter. The company also shocked the market when it revealed that its fulfillment expenses and marketing expenses had substantially increased and that it had a sharp deceleration in active subscriber growth.

On an earnings call held with investors that same day, Rent the Runway’s CFO admitted that the company was suffering “transportation headwinds” and “labor wage rate increases” during the quarter. Although Rent the Runway failed to disclose these headwinds, the CFO stated not only that they predated the IPO but also that they were “anticipated.” Following this news, the price of Rent the Runway shares declined by $1.31 per share, or approximately 10.23%, from $12.81 per share to close at $11.50 on December 8, 2021.