LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Rent the Runway, Inc. (“RTR” or the “Company”) (NASDAQ: RENT) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your RTR investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/rent-the-runway-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
In October 2021, RTR conducted its initial public offering (“IPO”), selling 17 million shares of Class A common stock at $21 per share.
On December 8, 2021, RTR announced its third quarter 2021 financial results, disclosing that the Company had suffered a quarterly net loss of $87.8 million while its fulfillment expenses had increased by 75% and its marketing expenses had increased from $1.4 million to $10.8 million. The Company also reported a deceleration in active subscriber growth.
Then, on April 13, 2022, RTR reported that its active subscribers had declined during fourth quarter 2021, while its fulfillment and marketing expenses remained elevated compared to historical trends.
Then, on September 12, 2022, RTR disclosed that it only had 124,131 active subscribers. The Company also announced a “restructuring plan” to reduce costs, which included a 24% workforce reduction.
On this news, RTR’s stock fell $1.91, or 38.7%, to close at $3.02 per share on September 13, 2022, thereby injuring investors.
By October 2022, the price of RTR Class A common stock had fallen below $2 per share, 90% below the IPO price.
Whistleblower Notice: Persons with non-public information regarding RTR should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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