Rent the Runway, Inc. (NASDAQ:RENT)

Join This Class Action

NEW YORK, NY –  November 16, 2022 – Wolf Haldenstein Adler Freeman & Herz LLP  announces that a federal securities class action lawsuit has been filed in the United States District Court for the Eastern District of  New York on behalf of investors who  Rent the Runway, Inc. (“RTR”) (NASDAQ:RENT) who purchased Class A common stock issued in connection with RTR’s October 2021 initial public offering (the “IPO”).

All investors who purchased the shares and incurred losses are  advised  to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.  

If you have incurred losses, you may, no later than January 13, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

RTR is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories. RTR offers high-end apparel such as evening wear and accessories, as well as more causal and mixed-use items such as ready-to-wear, workwear, denim, maternity, outerwear, blouses, knitwear,loungewear, jewelry, handbags, activewear, ski wear, home goods, and kidswear. RTR sources its products from over 750 luxury brand partners.

On October 4, 2021, RTR filed an SEC registration statement on a FormS-1 for the IPO, which, after several amendments, was declared effective on October 26, 2021 (the “Registration Statement”). On October 27, 2021, RTR filed a prospectus for the IPO on a Form 424B4, which incorporated and formed part of the Registration Statement (the “Prospectus”). 17 million shares of RTR Class A common stock at $21 per share for $357 million were sold to investors.

According to the filed complaint, RTR failed to disclose in its Registration Statement and Prospectus the following adverse facts that existed at the time of the IPO:

  • RTR was continuing to face extraordinary business head winds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic;
  • RTR’s active subscriber enrollments had sharply decelerated from the growth trajectory represented in the Registration Statement and, as a result, RTR was several months away from approaching its pre-pandemic levels of active subscriptions;
  • RTR needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network;
  • RTR was suffering from ballooning fulfillment and transportation costs; and
  • as a result of the above, RTR was suffering accelerating operational losses at the time of the
    IPO and was far less likely to achieve profitability in the near term, if ever.

RTR’s stock is currently trading at $1.60 per share, or over 90% below the IPO price.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com

Contact: 

Wolf Haldenstein Adler Freeman & Herz LLP

Patrick Donovan, Esq.

Gregory Stone, Director of Case and Financial Analysis

Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com

Tel: (800) 575-0735 or (212) 545-4774


Certification and Authorization Pursuant to Federal Securities Laws

  • The individual or entity listed below requests Wolf Haldenstein Adler Freeman & Herz LLP to file an action or motion for appointment as lead plaintiff and lead counsel under the federal securities laws to recover damages and to seek other relief against Rent the Runway, Inc. (NASDAQ:RENT). Wolf Haldenstein Adler Freeman & Herz LLP will not do so until you complete a retainer agreement authorizing us to prosecute the action on a contingent fee basis.

  • I, individually or on behalf of the entity I represent ("I"), hereby certify as follows:

    1. I have reviewed the complaint and authorize the filing of a lead plaintiff motion or action on my behalf.
    2. I did not acquire the security that is the subject of this action at the direction of the Firm or in order to participate in this private action or any other litigation under the federal securities laws.
    3. I am willing to serve as a representative party on behalf of a class, including providing testimony at deposition and trial, if necessary.
    4. I represent and warrant that I am fully authorized to enter into and execute this certification.
    5. I will not accept any payment for serving as a representative party on behalf of the class beyond my pro rata share of any recovery, except such reasonable costs and expenses (including lost wages) directly relating to the representation of the class as ordered or approved by the court.
    6. I have made no transaction(s) during the Class Period in the debt or equity securities that are the subject of this action except those set forth below:
  • Type of SecurityBuy Date (mm/dd/yy)# of SharesPrice per Share 
  • Type of SecuritySell Date (mm/dd/yy)# of SharesPrice per Share 
  • Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

Date of signing: 11/30/2022