New York, New York--(Newsfile Corp. - December 4, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in The RealReal, Inc. (NASDAQ: REAL) ("The RealReal" or the "Company") of the January 24, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in The RealReal stock or options pursuant to June 27, 2019 Initial Public Offering ("IPO") and would like to discuss your legal rights, click here: www.faruqilaw.com/REAL. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased The RealReal securities pursuant to June 27, 2019 IPO (the "Class Period"). The case, Sanders v. The RealReal, Inc. et al, No. 19-cv-07737 was filed on November 25, 2019, and has been assigned to Judge Edward J. Davila.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing 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.
Specifically, on November 5, 2019, CNBC published an investigate report that showed that the Company's authentication process was not as robust as it led consumers to believe. CNBC spoke with "nearly three dozen former employees and obtained internal company documents that show not everything is authenticated by an expert and employees work under strict quotas that lead to fakes being sold on the site."
CNBC's investigative report also found that copywriters, who received "little training on how to spot fakes and were hired to write descriptions of the items to post on the website," were tasked with authenticating items that went on the Company's site. CNBC also found "internal company documents that clearly spell out strict quotas that employees have been expected to meet or face discipline."
On this news, the Company's stock price fell $3.80 or over 19% over the next two trading days to close at $19.37 on November 6, 2019.
Since the IPO, and as a result of the disclosure of material adverse facts omitted from The RealReal's Registration Statement, The RealReal's stock price has fallen below its IPO price, damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding The RealReal's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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