Retailer Torrid Defeats Investor Suit Over Inventory, Warehouse

A proposed class action against Torrid Holdings Inc. failed to adequately show the clothing company misled shareholders about its approach to inventory control, its distribution center’s capacity, and its Covid-19 “resiliency,” a federal court ruled.

All the initial public offering statements that the investors targeted are either inactionable or not shown to be false or misleading, Judge Josephine L. Staton said Dec. 1 for the US District Court for the Central District of California.

The investors “have thrown dozens of statements at the wall to see which will stick,” Staton said. Many of the 40 statements they list “are composed ...