PHILADELPHIA, PA / ACCESSWIRE / November 30, 2022 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Torrid Holdings Inc. ("Torrid") (NYSE:CURV) on behalf of those who purchased common stock issued in connection with Torrid's July 2021 initial public offering (the "IPO").
Investor Deadline: Investors who purchased or acquired Torrid common stock may, no later than January 17, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/torrid-holdings-inc/
Torrid is a fashion retailer specializing in plus-size apparel and intimates. Torrid sells direct to consumers through its e-commerce platform and via more than 600 physical stores located throughout North America. Leading up to the IPO, Torrid claimed to be experiencing rapid sales growth and an impressive recovery following a temporary downturn in the face of the initial phases of the COVID-19 pandemic, which began in March 2020.
On June 7, 2021, Torrid filed with the SEC a registration statement on a Form S-1 for the IPO, which, after several amendments, was declared effective on June 30, 2021 (the "Registration Statement"). On July 2, 2021, Torrid filed with the SEC a prospectus on a Form 424B4 which incorporated and formed part of the Registration Statement. Defendants used the Registration Statement to sell 12.65 million shares of Torrid at $21 per share, generating over $265 million in gross offering proceeds.
At the time the complaint was filed the price of Torrid common stock was trading below $ 5.00 per share, well below the IPO price of $21.00 per share.
The complaint alleges that the Registration Statement failed to disclose, inter alia, the following adverse facts that existed at the time of the IPO: (a) 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 that such ephemeral demand trends had dissipated and were not internally projected to continue following the IPO; (b) Torrid was suffering from severe supply chain disruptions caused by the emergence of the Delta variant of COVID-19, which had first emerged in May 2021; (c) Torrid was running materially below historical inventory levels as a result of supply chain disruptions; (d) as a result of the above, Torrid did not have sufficient inventory to meet expected consumer demand for its fiscal third quarter of 2021; and (e) as a result of the above, late inventory arrival had materially impaired the company from effectively matching consumer buying trends, creating an undisclosed risk of increased markdowns and promotional activities necessary to sell undesirable inventory.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague