Rent the Runway Inc. investors can proceed with part of their proposed class action against the internet clothing rental company over statements before its initial public offering, a federal court ruled.
The investors adequately alleged that Rent the Runway made misleading statements in its registration and prospectus documents about shipping costs, thefts, and insurance coverage, Judge Orelia E. Merchant said Wednesday for the US District Court for the Eastern District of New York.
The investors allege the undisclosed adverse factors caused the company’s share price to drop from $21.00 per share at the time of the October 2021 IPO to ...
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