The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against The RealReal, Inc....
January 23 2020 - 3:41AM
Business Wire
The Law Offices of Frank R. Cruz reminds investors of the
upcoming January 24, 2020 deadline to file a lead plaintiff
motion in the class action filed on behalf of The RealReal, Inc.
(“RealReal” or the “Company”) (NASDAQ: REAL) 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 here to
participate.
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.
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If you purchased or otherwise acquired RealReal securities
during the Class Period, you may move the Court no later than
January 24, 2020 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 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/20200123005283/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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