The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of The RealReal, Inc. Investors ...
January 16 2020 - 12:00PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of investors that purchased The
RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: REAL) 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”). RealReal investors have until January
24, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to
participate.
In June 2019, RealReal completed its initial public offering
(“IPO”), selling 17.25 million shares at $20.00.
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 throughout
the Class Period, 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: twitter.com/FRC_LAW.
If you purchased RealReal securities during the Class Period,
you may move the Court no later than January 24, 2020 to ask
the Court to appoint you as lead plaintiff. To be a member of the
Class 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. If you purchased RealReal securities, have
information or would like to learn more about these claims, or have
any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Frank R.
Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the
Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007,
by email to info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200116005405/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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