NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into RH (NYSE: RH).
In 2015, RH launched new product lines, notably, “RH Modern” repeatedly emphasizing its preparedness for the launch pertaining to necessary inventory investments and proper inventory levels, as well as its subsequent performance. On February 24, 2016, RH disclosed negative Q4 2015 results caused in part by “shipping delays as certain vendors are struggling to ramp up production” and that “poor in-stocks also suppressed orders….” Then, on June 8, 2016, RH revealed that it had issued $18 million in customer accommodations “largely as a result of RH Modern production delays” contributing to negative Q1 2016 results.
Thereafter, RH and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court presiding over that case denied RH’s motion to dismiss, noting in part that “…rosy representations concealed that RH Modern was suffering from a severe lack [of] inventory” and citing an internal RH memo stating that customers were “on fire” and that RH had “let customers die.”
KSF’s investigation is focusing on whether RH’s officers and/or directors breached their fiduciary duties to RH’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of RH shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-rh/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
