Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Rent the Runway, Inc. (RENT) Investors and Encourages Investors to Contact the Firm Before January 13, 2023
NEW YORK, Nov. 21, 2022 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those (a) who acquired Rent the Runway, Inc. (“Rent the Runway” or the “Company”) (NASDAQ: RENT) securities pursuant and/or traceable to the Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with Rent the Runway’s October 27, 2021 initial public offering (“IPO”); and/or (b) that purchased or otherwise acquired Rent the Runway securities between October 24, 2021 through November 14, 2022 (the “Class Period”). Investors have until January 13, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Rent the Runway is an online e-commerce website that allows women to rent designer apparel and accessories.
On October 27, 2021, Rent the Runway conducted its initial public offering (“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.
The lawsuit alleges that the Registration Statement was false and/or misleading and/or failed to disclose that: (i) Rent the Runway was continuing to face extraordinary business headwinds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic; (ii) Rent the Runway’s active subscriber enrollments had sharply decelerated from the growth trajectory represented in the offering documents and, as a result, Rent the Runway was several months away from approaching its pre-pandemic levels of active subscriptions; (iii) Rent the Runway needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network; (iv) Rent the Runway was suffering from ballooning fulfillment and transportation costs; and (v) as a result, Rent the Runway 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 represented.
By October 2022, the price of Rent the Runway Class A common stock had fallen below $2 per share, 90% below the price at which Rent the Runway common stock had been sold to the investing public less than one year prior.
If you purchased or otherwise acquired Rent the Runway securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
- FTI Consulting and Compass Lexecon Recognized as Leading Firms at Who’s Who Legal Awards
- Global Legal Publishing Market Analysis Report 2022-2026: Breakdown by Databases, Tools & Solutions, Books, Directories, Journals, & Looseleafs
- Hotels for Trial Presents Inaugural Litigation Support Person of the Year Award
- Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Unisys Corporation (UIS) Investors and Encourages Investors to Contact the Firm Before January 10, 2023
- Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Schmitt Industries, Inc. (SMIT) Investors and Encourages Investors to Contact the Firm Before December 12, 2022
- Kirby McInerney LLP Continues Investigation of Shareholder Claims Against Singularity Future Technology, Ltd. (SGLY)