This lawsuit is for anyone who acquired securities in Rent the Runway, Inc. (NASDAQ: RENT) from October 24, 2021 through November 14, 2022.
The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, in the Prospectus to the Company's IPO, and throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that as the pandemic faded, the Company was poised to increase sales when, in fact, the Company was facing significant headwinds in the forms of higher labor and transportation costs.
On December 8, 2021, RTR announced its third quarter 2021 financial results, disclosing that the Company had suffered a quarterly net loss of $87.8 million while its fulfillment expenses had increased by 75% and its marketing expenses had increased from $1.4 million to $10.8 million. The Company also reported a deceleration in active subscriber growth. Then, on April 13, 2022, RTR reported that its active subscribers had declined during fourth quarter 2021, while its fulfillment and marketing expenses remained elevated compared to historical trends. Then, on September 12, 2022, RTR disclosed that it only had 124,131 active subscribers. The Company also announced a “restructuring plan” to reduce costs, which included a 24% workforce reduction. On this news, the price of the Company's stock dropped precipitously on unusually heavy trading volume and traded at lower than the IPO price at the time of this lawsuit.
The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Rent the Runway, Inc. (NASDAQ: RENT) from October 24, 2021 through November 14, 2022 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.
Join the Class Action
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I, the Plaintiff, certify that:
1. I have reviewed the Complaint and authorized its filing.
2. Plaintiff did not purchase the security that is the subject of this
action, at the direction of plaintiff's counsel or in order to
participate in any private action arising under this title.
3. I am willing to serve as a representative party on behalf of a class
and will testify at deposition and trial, if necessary.
4. My transactions in the securities, which are the subject of this
action, during the Class Period set forth in the Complaint are as
5. I have not served as a representative party on behalf of a class
under the federal security laws during the last three years, except
if detailed below.
6. I will not accept any payment for serving as a representative party,
except to receive my pro rata share of any recovery or as ordered
or approved by the court including the award to a representative
plaintiff of reasonable costs and expenses (including lost wages)
directly relating to the representation of the class.
agreement and retain the Law Offices of Howard G. Smith and its associates to proceed on Plaintiff's behalf, on a contingent fee basis. If I am executing this agreement on behalf of an institution, I further certify that I am authorized to execute this agreement on behalf of the institution.