World News: 16:00 GMT Tuesday 14th January 2020. [Glancy Prongay & Murray LLP via Globe Newswire via SPi World News]
LOS ANGELES, Jan. 14, 2020 (GLOBE NEWSWIRE) -- (“GPM”) reminds investors of the upcoming deadline to file a lead plaintiff motion in the class action filed on behalf of The RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: ) investors who purchased common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2019 initial public offering (“IPO” or the “Offering”).
If you are a shareholder who suffered a loss, click to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to , or visit our website at .
In June 2019, RealReal completed its initial public offering (“IPO”), selling 17.25 million shares at $20.00 per share.
On November 5, 2019, CNBC published a report based on “nearly three dozen former employees” and “internal company documents that show not everything is authenticated by an expert” and that “employees work under strict quotas that lead to fakes being sold on the site.”
On this news, the Company’s share price fell $3.80, or 19%, over two consecutive trading sessions to close at $19.37 on November 6, 2019. Since the IPO, RealReal stock has traded as low as $12.80 per share, a significant decline from the $20 IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s employees received little training on how to spot fake items; (2) that the Company’s strict quotas on its employees exacerbated product authentication issues; (3) that consequently, the potential for counterfeit or mislabeled items to make it through Company’s authentication process was higher than disclosed; and (4) that, as a result, defendants’ statements about RealReal’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: .
If you purchased RealReal common stock pursuant and/or traceable to the Registration Statement, you may move the Court no later than to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to , or visit our website at . If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Globe Newswire: 16:00 GMT Tuesday 14th January 2020
SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2020. [Admin Only]
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 07519380.