This lawsuit is for anyone who acquired securities in Torrid Holdings, Inc. (NYSE: CURV) from June 29, 2021 though November 16, 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, the Company misled investors regarding its financial condition. More specifically, the lawsuit allege misled investors by failing to tell investors that the surge in sales that the Company received during the COVID pandemic was temporary despite internal projections that the surge was temporary. The Company also misled investors by failing to inform investors that the COVID pandemic was causing supply chain issues.
On December 8, 2021, Torrid announced its third quarter 2021 financial results, and disclosed that sales had increased only 14% year-over-year, compared to a reported 108% increase for the first quarter of 2021. The Company also lowered its annual guidance. On this news, the price of the Company's stock dropped precipitously on unusually heavy trading volume. Then, on January 10, 2022, Torrid issued a press release further lowering the Company’s sales and earning guidance. On this news, the price of the Company's stock again dropped precipitously on unusually heavy trading volume. Then, on March 17, 2022, Torrid released its fourth quarter 2021 financial results, revealing that sales growth had continued to decelerate to just 4.5% growth during the quarter, with the Company’s adjusted EBITDA margin falling to only 9% of net sales due to supply chain disruptions and increased transportation and product costs. Finally, on September 7, 2022, Torrid released its second quarter 2022 financial results, revising the Company’s annual 2022 net sales guidance from a range of $1.3 billion to $1.365 billion to a range of $1.26 billion to $1.3 billion, as well as revising its annual 2022 adjusted EBITDA guidance from a range of $195 million to $220 million to a range of $160 million to $175 million. On this news, the price of the Company's stock again dropped precipitously on unusually heavy trading volume and traded at a lower price at the time of this lawsuit than it did at the time of the IPO..
The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Torrid Holdings, Inc. (NYSE: CURV) from June 29, 2021 though November 16, 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.
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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.