NASDAQ:RENT Investor Alert: Lawsuit Alleges Securities Laws Violations by Rent the Runway, Inc.
A lawsuit was filed on behalf of investors in Rent the Runway, Inc. (NASDAQ:RENT) shares over alleged securities laws violations.
San Diego, CA -- (SBWire) -- 12/06/2022 --An investor, who purchased shares of Rent the Runway, Inc. (NASDAQ: RENT), filed a lawsuit over alleged violations of Federal Securities Laws by Rent the Runway, Inc. made in connection with Runway's October 27, 2021 initial public offering (the "IPO").
Investors who purchased a significant amount of shares of Rent the Runway, Inc. (NASDAQ: RENT) and continue to hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: January 13, 2023. NASDAQ: RENT investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Brooklyn, NY based Rent the Runway, Inc. rents designer wear for women through its stores and online retail.
Rent the Runway, Inc. conducted its initial public offering ("IPO") in October 2021 and sold 17 million shares at $21 per share.
Shares of Rent the Runway, Inc. (NASDAQ: RENT) declined to as low as $1.10 per share on November 22, 2022.
The plaintiff alleges on behalf of purchasers of Rent the Runway, Inc. (NASDAQ: RENT) common shares , that the defendants violated Federal Securities Laws. The Complaint alleges that 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.
However, the plaintiff claims that the IPO's offering documents failed to disclose the following material facts: (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.
Those who purchased shares of Rent the Runway, Inc. (NASDAQ: RENT) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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Shareholders Foundation, Inc.
View this press release online at: http://rwire.com/1367523