The RealReal, Inc.
Lead Plaintiff Deadline: 01/24/2020
SUMMARY OF CASE:
A securities class action has been filed against The RealReal, Inc. (REAL) on behalf of all persons and entities, other than Defendants, who purchased RealReal common stock pursuant and/or traceable to the Company’s Registration Statement (defined below) issued in connection with the Company’s June 27, 2019 initial public offering (the “IPO”). This case has been filed in the USDC – NCal.
The Complaint alleges Defendant’s Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) the Company’s employees received little training on how to spot fake items; (2) the Company’s strict quotas on its employees exacerbated product authentication issues; (3) consequently, the potential for counterfeit or mislabeled items to make it through Company’s authentication process was higher than disclosed; and (4) as a result, defendants’ statements about RealReal’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.