BENSALEM, Pa.–(BUSINESS WIRE)–$REAL–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who 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.
Investors suffering losses on their RealReal investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
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.
If you purchased RealReal common stock pursuant and/or traceable to the Registration Statement, 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com
