Mattress Unicorn Casper Accused of Misleading Investors With IPO

Casper Sleep Inc. duped investors into pouring $100 million into its IPO, knowing its financial prospects were far dimmer than it promised, according to a lawsuit seeking class action status.

It’s the latest in a series of blows to the online mattress retailer, which went public at $12 a share in February. The stock closed at $13.50 on its first day out, for a market capitalization of less than half the $1.1 billion Casper was valued at in a private funding round last year. The bed-in-a-box startup ended Friday with a share price of $8.50 and a market value of ...