LOS ANGELES, CA / ACCESSWIRE / December 2, 2022 / The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Rent the Runway, Inc. ("Rent the Runway" or "the Company") (NASDAQ:RENT) for violations of the federal securities laws.
Investors who purchased the Company's shares pursuant and/or traceable to the Company's initial public offering conducted on October 27, 2021 (the "IPO") are encouraged to contact the firm before January 13, 2023.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Rent the Runway suffered from continuing business problems related to transportation and labor cost increases. The Company's active subscriber enrollment had slowed significantly from the growth trajectory it touted during the IPO. The Company would need to significantly increase its marketing expenses to attempt to increase its subscriber base. The Company's ballooning costs meant it was far less likely to achieve future profitability than it represented to the market. Based on these facts, the Company's public statements were false and materially misleading throughout the IPO period. When the market learned the truth about Rent the Runway, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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The Schall Law Firm
Brian Schall, Esq.,
SOURCE: The Schall Law Firm