RM LAW, P.C. has commenced an investigation into potential securities law violations by certain officers of RH (“RH” or the “Company”) (NYSE: RH).
If you purchased shares of RH and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
In 2015, RH launched new product lines, notably, “RH Modern” repeatedly emphasizing its preparedness for the launch pertaining to necessary inventory investments and proper inventory levels, as well as its subsequent performance. On February 24, 2016, RH disclosed negative Q4 2015 results caused in part by “shipping delays as certain vendors are struggling to ramp up production” and that “poor in-stocks also suppressed orders….” Then, on June 8, 2016, RH revealed that it had issued $18 million in customer accommodations “largely as a result of RH Modern production delays” contributing to negative Q1 2016 results.
Thereafter, RH and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court presiding over that case denied RH’s motion to dismiss.