Levi & Korsinsky, LLP announces that a RENT class action lawsuit has been filed on behalf of investors who purchased Rent the Runway, Inc. (RENT) This lawsuit is on behalf of all persons or entities who purchased Rent the Runway Class A common stock in or traceable to the Company’s October 2021 initial public offering. For more on the RENT Lawsuit please contact us today.
According to the Rent the Runway lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (i) Rent the Runway was continuing to face extraordinary business headwinds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic; (ii) Rent the Runway’s active subscriber enrollments had sharply decelerated from the growth trajectory represented in the offering documents and, as a result, Rent the Runway was several months away from approaching its pre-pandemic levels of active subscriptions; (iii) Rent the Runway needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network; (iv) Rent the Runway was suffering from ballooning fulfillment and transportation costs; and (v) as a result, Rent the Runway was suffering accelerating operational losses at the time of the initial public offering and was far less likely to achieve profitability in the near term, if ever, than represented.
If you suffered a loss in Rent the Runway you have until January 13, 2023, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
55 Broadway, 10th Floor
New York, NY 10006
Tel: (212) 363-7500
Fax: (212) 363-7171