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Luxury Reseller RealReal Hit With Investors’ Suit Over IPO

Nov. 25, 2019, 9:40 PM

RealReal Inc. misled investors about the strength of its authentication process ahead of its June initial public offering, according to a Nov. 25 suit in California federal district court.

The luxury consignment company told investors in its registration statement that buyers trusted it thanks to a “rigorous authentication process.” But RealReal didn’t actually provide employees with much training on how to spot fakes, the would-be class complaint filed in the U.S. District Court for the Northern District of California said.

RealReal had some copywriters with little authentication training check for fakes instead of making sure experts examined every product, the ...