NEW YORK, NY / ACCESSWIRE / November 25, 2022 / Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, is informing investors that the deadline to move for lead plaintiff in a securities class action lawsuit against Torrid Holdings Inc. (NYSE:CURV) ("Torrid" or the "Company") and certain other defendants is January 16, 2023. The action, which was filed in the U.S. District Court for the Central District of California asserts claims under §§11 and 15 of the Securities Act of 1933 (the "Securities Act") on behalf of a Class consisting of all persons who purchased Torrid common stock in or traceable to the Company's July 2021 initial public offering ("IPO"), and who were damaged thereby. If you purchased Torrid common stock in or traceable to the IPO, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman at (888) 398-9312, or [email protected], for more information.
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Torrid is a direct-to-consumer brand of women's plus-size apparel and intimates. In July 2021, the Company conducted its IPO, selling 12.65 million Torrid shares to the investing public at $21 per share, generating over $265 million in gross offering proceeds.
Among other things, according to the complaint filed in this action, the offering documents used to effectuate Torrid's IPO created a misleading impression that Torrid's impressive growth trajectory leading up to the IPO was then continuing and expected to continue following the offering. However, in the first half of 2021, Torrid had experienced a temporary surge in demand as a result of changed consumer behaviors in response to the COVID-19 pandemic and government stimulus and such short-lived demand trends had dissipated and were not internally projected following the IPO. What is more, according to the complaint, Torrid was suffering from severe supply chain disruptions, running materially below historical inventory levels, and failing to effectively match consumer buying trends, which created an undisclosed risk of increased markdowns and promotional activities.
As the market began to learn the truth, the price of Torrid's shares precipitously declined. In fact, by the end of September 2022, Torrid's stock fell to a low of $4.06 per share, over 80% below the IPO offering price.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is January 16, 2023. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Torrid common stock during the Class Period, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.
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SOURCE: Scott+Scott Attorneys at Law LLP