Shuman Glenn & Stecker Investigates The RealReal, Inc.
September 15 2020 - 12:06PM
Business Wire
Shuman Glenn & Stecker announces that it is investigating
potential shareholder claims against certain officers and directors
of The RealReal, Inc. (“RealReal” or the “Company”) (Nasdaq: REAL).
RealReal purports to operate as an online marketplace for consigned
luxury goods.
The Firm’s investigation relates to RealReal’s June 27, 2019
initial public offering (“IPO”), in which it sold 17.25 million
shares at $20 per share for approximately $345 million in proceeds.
The IPO was issued in connection with a Prospectus which
represented that RealReal takes in used luxury goods from various
consignors, processes those items at its facilities, and then sells
the items on its website for varying commission fees. Critically,
RealReal purports to “authenticate, write the associated copy,
photograph, price, sell and handle all fulfillment and returns
logistics” for the items it receives from consignors. Replete
throughout the Prospectus, RealReal’s website, and its officers’
public statements are representations that “[o]ur highly trained
experts build trust in our buyer base by thoroughly inspecting the
quality and condition of, and authenticating, every item we
receive.”
Following the IPO, however, a series of media articles,
including an extensive investigative report published by CNBC on
November 5, 2019, revealed that the vast majority of items
supposedly “authenticated” by RealReal were actually reviewed only
by its copywriters and not by expert authenticators. Thus, many
counterfeit items were processed and sold to RealReal customers. As
the truth about RealReal’s authentication process began to leak out
following the IPO, its stock price declined significantly. RealReal
stock still trades for less than the IPO price, and a federal
securities class action against RealReal was filed on November 25,
2019 in the U.S. District Court for the Northern District of
California. That case remains pending.
If you currently own RealReal common stock and are interested in
discussing your rights, or have information relating to this
investigation, please contact Brett Stecker toll free at (866)
569-4531 or email Mr. Stecker at brett@shumanlawfirm.com.
Shuman Glenn & Stecker represents investors throughout the
nation, concentrating its practice in stockholder litigation.
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SHUMAN GLENN & STECKER Brett D. Stecker, Esq. 326 West
Lancaster Ave., Suite 110 Ardmore, PA 19003 Tel: 866.569.4531 Fax:
303.536.7849 Email: brett@shumanlawfirm.com Web:
www.shumanlawfirm.com
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