INVESTOR NOTIFICATION: Kessler Topaz Meltzer & Check, LLP Announces Lead Plaintiff Deadline on January 13, 2023 in Securities Fraud Class Action Lawsuit Filed against Rent the Runway, Inc.
The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Rent the Runway, Inc. ("Rent the Runway") (NASDAQ: RENT). The action charges Rent the Runway with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of Rent the Runways' materially misleading statements and omissions to the public, Rent the Runway's investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: JANUARY 13, 2023
CLASS PERIOD: OCTOBER 27, 2021 THROUGH NOVEMBER 14, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
RENT THE RUNWAY'S ALLEGED MISCONDUCT
On October 27, 2021, Rent the Runway conducted its IPO, selling 17 million shares at $21.00 per share. 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.
Then, just one month after the IPO, on December 8, 2021, Rent the Runway revealed that for the quarter that ended on October 31, 2021 - just days after the IPO - the company reported nearly double its loss of the prior year quarter. The company also shocked the market when it revealed that its fulfillment expenses and marketing expenses had substantially increased and that it had a sharp deceleration in active subscriber growth.
On an earnings call held with investors that same day, Rent the Runway's CFO admitted that the company was suffering "transportation headwinds" and "labor wage rate increases" during the quarter. Although Rent the Runway failed to disclose these headwinds, the CFO stated not only that they predated the IPO but also that they were "anticipated." Following this news, the price of Rent the Runway shares declined by $1.31 per share, or approximately 10.23%, from $12.81 per share to close at $11.50 on December 8, 2021.
By November 14, 2022, the day the lawsuit was filed, the price of Rent the Runway Class A common stock had fallen to $1.58 per share, 92.48% below the price at which Rent the Runway common stock had been sold to the investing public in the IPO.
WHAT CAN I DO?
Rent the Runway investors may, no later than January 13, 2023, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Rent the Runway investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
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