| COMPANY |
Rent the Runway, Inc. |
| COURT |
United States District Court for the Eastern District of New York |
| CASE NUMBER |
22-cv-06935 |
| JUDGE |
Orelia E. Merchant |
| CLASS PERIOD |
October 27, 2021 and November 14, 2022 |
| SECURITY TYPE |
Common Stock |
Case Background:
This is a 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 October 2021 initial public offering (the “IPO”).
The Complaint alleges that the Registration Statement 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 5, 2023, the Lead Plaintiff filed an Amended Complaint. Defendants filed a Motion to Dismiss for Failure to State a Claim on February 23, 2024. On September 25, 2024, the Court entered an Order granting in part and denying in part the Motion to Dismiss. Defendants filed a Motion for Reconsideration on the Order on the Motion to Dismiss on October 30, 2024. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 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.