NEW YORK, Nov. 25, 2022 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors who Rent the Runway, Inc. ("RTR") (NASDAQ:RENT) who purchased Class A common stock issued in connection with RTR's October 2021 initial public offering (the "IPO").
All investors who purchased the shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than January 13, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
PLEASE CLICK HERE TO JOIN THE CASE
RTR is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories. RTR offers high-end apparel such as evening wear and accessories, as well as more causal and mixed-use items.
On October 4, 2021, RTR filed an SEC registration statement on a FormS-1 for the IPO, which, after several amendments, was declared effective on October 26, 2021 (the "Registration Statement"). On October 27, 2021, RTR filed a prospectus for the IPO on a Form 424B4, which incorporated and formed part of the Registration Statement (the "Prospectus"). 17 million shares of RTR Class A common stock at $21 per share for $357 million were sold to investors.
According to the filed complaint, RTR failed to disclose in its Registration Statement and Prospectus the following adverse facts that existed at the time of the IPO:
- RTR was continuing to face extraordinary business head winds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic;
- RTR's active subscriber enrollments had sharply decelerated from the growth trajectory represented in the Registration Statement and, as a result, RTR was several months away from approaching its pre-pandemic levels of active subscriptions;
- RTR needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network;
- RTR was suffering from ballooning fulfillment and transportation costs; and
- as a result of the above, RTR 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 originally represented.
RTR's stock is currently trading at $1.60 per share, or over 90% below the IPO price.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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