An investigation on behalf of current long term investors in Torrid Holdings Inc. (NYSE:CURV) shares over possible breaches of fiduciary duty by certain officers and directors was announced
San Diego, CA -- (SBWIRE) -- 02/23/2023 -- Certain directors of Torrid Holdings Inc. are under investigation concerning potential breaches of fiduciary duties.
Investors who are investors in Torrid Holdings Inc. (NYSE: CURV) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for investors in NYSE: CURV stocks follows a lawsuit filed against Torrid Holdings Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE: CURV stocks, concerns whether certain Torrid Holdings directors are liable in connection with the allegations made in that lawsuit.
The plaintiff alleges that the Registration Statement failed to disclose that the following adverse facts existed at the time of the IPO: (i) in the first half of 2021, Torrid had experienced a temporary surge in demand as a result of changed consumer behaviors in response to the COVID-19 pandemic and government stimulus and that such ephemeral demand trends had dissipated and were not internally projected to continue following the IPO; (ii) Torrid was suffering from severe supply chain disruptions caused by the emergence of the Delta variant of COVID-19, which had first emerged in May 2021; (iii) Torrid was running materially below historical inventory levels as a result of supply chain disruptions; (iv) as a result, Torrid did not have sufficient inventory to meet expected consumer demand for its fiscal third quarter of 2021; (v) as a result, late inventory arrival had materially impaired the Company from effectively matching consumer buying trends, creating an undisclosed risk of increased markdowns and promotional activities necessary to sell undesirable inventory; (vi) Torrid's CFO planned to retire shortly after the IPO; and (vii) as a result of the above, the Registration Statement's representations regarding Torrid's historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, financial results, and trajectory of the Company at the time of the IPO, and were materially false and misleading and lacked a reasonable factual basis.
Those who purchased shares of Torrid Holdings Inc. (NYSE: CURV) have certain options and should contact the Shareholders Foundation.
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