Most of the proceeds of Torrid Holdings Inc.‘s initial public offering went to company insiders who had misrepresented the fashion retailer’s inventory management and resilience to pump up the stock price, an investor alleges.
The company’s current and former CEOs, its chief financial officer, and five directors “exploited their insider knowledge to sell more than $230 million worth of Torrid stock at artificially inflated prices,” shareholder Allegra Morgado says on behalf of the company.
She filed her derivative suit Friday in the US District Court for the District of Delaware.
One of the directors is the co-founder of Torrid’s ...
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