NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors that purchased The RealReal, Inc. (NASDAQ: REAL) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2019 initial public offering (“IPO” or the “Offering”). Investors have until January 24, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On November 5, 2019, CNBC published an investigative 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.”
On this news, the Company’s share price fell $3.80 per share or over 19% over the next two trading days to close at $19.37 on November 6, 2019.
The complaint, filed on November 25, 2019, alleges that the Registration Statement featured false and/or misleading statements and/or failed 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.
If you purchased RealReal securities pursuant and/or traceable to the Registration Statement issued in connection with the Company’s June 2019 IPO, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.