RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased The RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: REAL) securities 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”).
RealReal shareholders may, no later than January 24, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of RealReal 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 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.
If you are a member of the class, you may, no later than January 24, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.