Archived Investigations
Rent the Runway, Inc. (NasdaqGS: RENT)
Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until January 13, 2023 to file lead plaintiff applications in a securities class action lawsuit against 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.
The case is Sharma v. Rent The Runway, Inc. et al., No. 22-cv-6935.