SAN FRANCISCO, Oct. 11-15, 2022 (GLOBE NEWSWIRE) — Hagens Berman Urges Rent the Runway, Inc. (NASDAQ:RENT) Investors who have suffered significant losses Submit your losses now.
Defined class: Buyers on Rent the Runway Inc. IPO on October 27, 2021
Deadline for lead plaintiff: January 13, 2023
Contact a lawyer now: [email protected]
Rent the Runway, Inc. (NASDAQ:RENT) Securities Class Action:
The class action was filed on behalf of investors who acquired or are attributable to Rent the Runway’s initial public offering (“IPO”) on October 27, 2021 of 17 million shares at $21/share.
In particular, in the run-up to Rent the Runway’s IPO, the company claimed that it was experiencing a resurgence in business as concerns about the COVID-19 pandemic eased, lockdown measures eased and its customers became more involved in social outings.
However, according to the complaint, the offering documents of the IPO made no disclosures: (1) Rent the Runway continued to face exceptional business headwinds due to the COVID pandemic, such as: B. Transportation headwinds and wage increases; (2) the Company’s active subscriber enrollments had slowed sharply from the growth trajectory outlined in the offering documents and were therefore several months away from approaching pre-pandemic levels of active subscriptions; (3) the company has had to significantly increase its marketing and advertising expenses from historical levels in an attempt to expand its active subscriber network; (4) the company suffered from rising fulfillment and transportation costs; and (5) as a result, the company was suffering increasing operating losses at the time of the IPO and was far less likely to achieve profitability in the near future, if at all.
On December 8, 2021, during Rent the Runway’s third quarter 2021 earnings conference call, management admitted that the company was suffering from transportation issues and…
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