SAN DIEGO & CORTE MADERA, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of RH (NYSE: RH) filed a shareholder derivative complaint on behalf of RH against the company's officers and directors for alleged breach of fiduciary duties, corporate waste, and unjust enrichment. RH, together with its subsidiaries, operates as a retailer in the home furnishings.
View this information on the law firm's Shareholder Rights Blog:
RH Accused of Making False Statements About the Company's Inventory Levels
According to the complaint, in order to combat slowing revenue growth, RH decided to launch a new product line, RH Modern. RH repeatedly assured the public in shareholder reports and SEC filings that it would have the inventory to support the product launch. In reality, RH had not even finalized designs or placed orders with manufacturers in time for the launch. As a result, 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 plunged, erasing more than $3 billion in shareholder value. In the meantime, RH officials pocketed over $18 million in director and executive compensation in 2015 and 2016, which was not justified by RH's actual performance. RH is also the subject of a securities fraud class action lawsuit, exposing RH to extensive damages, injuries, and losses.
RH Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, 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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