The RealReal, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired The RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: REAL) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with RealReal’s June 2019 initial public offering (“IPO”). Investors have until January 24, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Registration Statement failed to disclose that: (i) the Company’s employees received little training on how to spot fake items; (ii) the Company’s strict quotas on its employees exacerbated product authentication issues; and (iii) consequently, the potential for counterfeit or mislabeled items to make it through the Company’s authentication process was higher than disclosed.
On June 28, 2019, The RealReal completed its IPO, offering shares at $20.00 and subsequently raising $300 million in proceeds. On August 14, 2019, shares of The RealReal plunged 14.8% after the Company announced its second quarter 2019 results. The results included an EBITDA loss of $20.9 million and a free cash flow loss of $32.1 million. On September 5, 2019, shares of The RealReal closed at $15.00, a decline of 25% from the IPO price.
If you acquired The RealReal securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.