Rent the Runway, Gwyneth Paltrow Trim Investor Lawsuit Over IPO

Rent the Runway Inc. and architects of its initial public offering culled some proposed class claims that they misled investors about clothing thefts in the lead up to the rental company going public.

IPO documentation allegedly omitting $6 million was lost in revenue due to theft wouldn’t have swayed reasonable investors in their decision-making, Judge Orelia E. Merchant said. That figure, which was a fraction of the company’s annual revenue, related to rented clothes, not the subscription rates of interest to investors, the US District Judge for the Eastern District of New York said in reconsidering a past decision ...