SAN FRANCISCO, April 17, 2018 /PRNewswire/ -- Shareholder and
consumer rights law firm Schubert Jonckheer & Kolbe LLP has
launched an investigation into whether certain officers and
directors of RH, Inc. (NYSE: RH) breached their fiduciary duties by
causing the company to issue false and misleading statements
related to the company's severe RH Modern inventory shortages. RH
is a retailer of luxury home furnishings, but sources its products
from third-party manufacturers, most of which are located
overseas.
The investigation concerns the company's failure to disclose key
challenges with its RH Modern branded products from March 26, 2015 through June 8, 2016. RH launched RH Modern on
March 26, 2015, describing the
product line as "the most important and significant new home
furnishings business to be launched in the last 15 or 20 years,"
and repeatedly assured investors that RH was "prepared for the
launch." In truth, however, there was a near complete lack of
available inventory. As a result of these inventory issues, the
company experienced significant customer complaints and canceled
orders. RH withheld most of this critical information from
investors, until June 8, 2016, when
the company announced that RH had issued $18
million in customer accommodations related to its RH Modern
inventory challenges.
On February 2, 2017, a federal
securities action was filed against the company and certain
officers and directors. On February 26,
2018, the Hon. Yvonne Gonzalez
Rogers denied RH's motion to dismiss allowing the litigation
to proceed. The Court found that plaintiffs in the action
adequately alleged that RH's "rosy representations concealed that
RH Modern was suffering from a severe lack [of] inventory and
defendants were receiving customer complaints and canceled orders
regarding the same."
If you currently own stock in RH, Inc. and wish to obtain
additional information about our investigation and your legal
rights, please contact Kathryn
Schubert by email at kschubert@sjk.law, by telephone at
(415) 788-4220, or fill out the form on our website at
http://classactionlawyers.com/rh.
About Schubert Jonckheer & Kolbe LLP
Schubert
Jonckheer & Kolbe LLP has extensive experience in prosecuting
securities claims, representing investors throughout the nation in
securities and shareholder lawsuits. Attorney advertising. Prior
results do not guarantee similar outcomes.
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SOURCE Schubert Jonckheer & Kolbe LLP