Lowey Dannenberg Notifies Rent the Runway Inc. (NASDAQ:RTR) Investors of Securities Class Action Lawsuit and Upcoming Lead Plaintiff Deadline

WHITE PLAINS, NY / ACCESSWIRE / November 17, 2022 / Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announced the filing of a securities class action lawsuit against Rent the Runway, Inc. ("Rent the Runway" or the "Company"), on behalf of purchasers of the Rent the Runway's Class A common stock in or traceable to the Company's October 27, 2021 initial public offering (the "IPO"), for violations of the Securities Act of 1933.

On November 14, 2022, a complaint was filed against Rent the Runway, certain of its top executives and directors, and underwriters of its October 2021 Initial Public Offering ("IPO"), alleging that the Company failed to disclose material facts in their IPO's Offering Documents. Specifically, the IPO's offering documents failed to disclose that: (i) Rent the Runway was continuing to face extraordinary business headwinds, such as transportation headwinds and labor wage rate increases, from the COVID-19 pandemic; (ii) Rent the Runway's active subscriber enrollments had sharply decelerated from the growth trajectory represented in the offering documents and, as a result, Rent the Runway was several months away from approaching its pre-pandemic levels of active subscriptions; (iii) Rent the Runway needed to substantially increase marketing and advertising costs from historical figures in order to attempt to grow its active subscriber network; (iv) Rent the Runway was suffering from ballooning fulfillment and transportation costs; and (v) as a result, Rent the Runway was suffering accelerating operational losses at the time of the IPO and was far less likely to achieve profitability in the near term, if ever, than represented.

By October 2022, the price of Rent the Runway Class A common stock had fallen below $2 per share, 90% below the price at which Rent the Runway common stock had been sold to the investing public less than one year prior.

If you suffered a loss in Rent the Runway's securities, and wish to participate, or learn more, click here, or please contact our attorneys at (914) 733-7234 or via email at investigations@lowey.com.

Any investor of the Company's Class A common stock in or traceable to the Company's October IPO who wishes to serve as Lead Plaintiff must act before the court deadline of January 13, 2023.

About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has recovered billions of dollars on behalf of its clients.

Contact:
Lowey Dannenberg P.C.
44 South Broadway, Suite 1100
White Plains, NY 10601
Tel: (914) 733-7234
Email: investigations@lowey.com

SOURCE: Lowey Dannenberg P.C.