Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or acquired Rent the Runway, Inc. (“Rent the Runway”) (NASDAQ: RENT) common stock pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Rent the Runway’s initial public offering (“IPO”) on or around October 2021.
The complaint alleges that, in the Registration Statement, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Rent the Runway was continuing to face extraordinary business headwinds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic; (2) 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; (3) Rent the Runway needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network; (4) Rent the Runway was suffering from ballooning fulfillment and transportation costs; and (5) as a result, Rent the Runway was suffering accelerating operational losses at the time of the IPO and was far less likely to achieve profitability in the near term, if ever, than represented.
Current Status of Case:
On September 12, 2025, the Court granted in part and denied in part Defendants’ Motion to Dismiss. On October 6, 2025, Defendants filed an Answer to the Amended Complaint. This action is in the discovery phase and is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.