NEW
YORK, Dec. 9, 2022 /PRNewswire/ -- Jakubowitz
Law announces that a securities fraud class action lawsuit has
commenced on behalf of shareholders of Rent the Runway, Inc.
(NASDAQ: RENT).
To receive updates on the lawsuit, fill out the
form:
https://claimyourloss.com/securities/rent-the-runway-inc-loss-submission-form/?id=34407&from=4
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.
Shareholders interested in acting as a lead plaintiff
representing the class of wronged shareholders have until
January 13, 2023 to petition
the court. Your ability to share in any recovery doesn't require
that you serve as a lead plaintiff.
According to a filed complaint, Rent the Runway, Inc. issued
materially 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.
Jakubowitz Law is vigorous in pursuit of justice for
shareholders who have been the victim of securities fraud. Attorney
advertising. Prior results do not guarantee similar outcomes.
CONTACT:
JAKUBOWITZ LAW
1140 Avenue of the Americas
9th Floor
New York, New York 10036
T: (212) 867-4490
F: (212) 537-5887
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SOURCE Jakubowitz Law