A lawsuit was filed on behalf of investors in Torrid Holdings Inc. (NYSE:CURV) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 12/06/2022 -- An investor, who purchased shares of Torrid Holdings Inc. (NYSE: CURV), filed a lawsuit over alleged Securities Laws violations by Torrid Holdings Inc. in connection with the Company's July 2021 initial public offering (the "IPO").
Investors who purchased shares of Torrid Holdings Inc. (NYSE: CURV) have certain options and for certain investors are short and strict deadlines running. Deadline: January 16, 2023. NYSE: CURV investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
City of Industry, CA based Torrid Holdings Inc. operates in women's plus-size apparel and intimates market in North America.
On June 30, 2021, Torrid Holdings Inc. announced the pricing of its initial public offering of 11.0 million shares of its common stock to be sold by certain of Torrid's existing shareholders at a price of $21.00 per share.
On December 8, 2021, Torrid Holdings Inc. announced its financial results for the quarter ended October 30, 2021. Torrid Holdings Inc. also announced the retirement of its Chief Financial Offer, George Wehlitz, and that the "Board of Directors initiated a share repurchase authorization under which the Company may purchase up to $100 million of its outstanding common stock." Following this news, Torrid shares plummeted.
Shares of Torrid Holdings Inc. (NYSE: CURV) declined from $20.95 per share on November 9, 2021, to as low as $5.77 per share on April 1, 2022.
The plaintiff claims 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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