Rent the Runway Faces Another Investor Suit Over IPO Statements

Rent the Runway Inc. omitted information about its costs and “unsustainable” business strategies before its initial public offering, an investor claims in a shareholder derivative lawsuit filed at the US courthouse in Brooklyn, NY.

The lawsuit comes as Rent the Runway defends itself from an investor proposed class action over misleading statements it made before its initial public offering about its shipping costs, thefts, and insurance coverage.

The internet clothing rental company and its current and former officers and directors breached their fiduciary duties, aided and abetted the breach, were unjustly enriched, wasted corporate assets, and violated the Securities Act, ...