Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Eastern District of New York on behalf of shareholders of Rent the Runway, Inc. (“RTR”) (NasdaqGS: RENT), if they purchased or acquired the Company’s shares pursuant and/or traceable to the Company’s October 2021 initial public offering (the “IPO”).
RTR and certain of its executives and others are charged with failing to disclose material information in its IPO Registration Statement and Prospectus, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that at the time of the IPO: (i) the Company was continuing to face extraordinary business challenges from the COVID-19 pandemic, such as transportation headwinds and labor wage rate increases; (ii) active subscriber enrollments had sharply decelerated from the growth trajectory represented; (iii) the Company needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network; (iv) the Company was suffering from ballooning fulfillment and transportation costs; and (v) as a result of the foregoing, the Company was suffering accelerating operational losses and was far less likely to achieve profitability in the near term.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until January 13, 2023 to request that the court appoint them lead plaintiff.