SAN DIEGO & CORTE MADERA, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of RH (NYSE: RH) breached their fiduciary duties to shareholders. RH, together with its subsidiaries, operates as a retailer in the home furnishings market.
Investors filed a consolidated class action complaint against RH arising from defendants' false and misleading statements regarding the launch of RH's new product line, RH Modern, and the company's inventory levels. The complaint alleges that RH repeatedly assured the public that it would have the inventory to support the product launch, but in reality, RH had not even placed orders with manufacturers in time for the launch. As a result, orders were delayed for up to a year, and RH made extensive accommodations to combat customer complaints, resulting in $18 million in customer accommodation expenses. When the truth of RH's wrongdoing was revealed, the company's stock dropped 75%, erasing more than $3 billion in shareholder value. On February 26, 2018, the Honorable Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California denied RH's motion to dismiss, paving the way for litigation to proceed. This class action could result in substantial damages to RH, causing depletion of its financial resources and further harm to shareholders.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/rh-may-2018
RH Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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