DENVER--(BUSINESS WIRE)--Shuman Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of The RealReal, Inc. (“RealReal” or the “Company”) (Nasdaq: REAL). RealReal purports to operate as an online marketplace for consigned luxury goods.
The Firm’s investigation relates to RealReal’s June 27, 2019 initial public offering (“IPO”), in which it sold 17.25 million shares at $20 per share for approximately $345 million in proceeds. The IPO was issued in connection with a Prospectus which represented that RealReal takes in used luxury goods from various consignors, processes those items at its facilities, and then sells the items on its website for varying commission fees. Critically, RealReal purports to “authenticate, write the associated copy, photograph, price, sell and handle all fulfillment and returns logistics” for the items it receives from consignors. Replete throughout the Prospectus, RealReal’s website, and its officers’ public statements are representations that “[o]ur highly trained experts build trust in our buyer base by thoroughly inspecting the quality and condition of, and authenticating, every item we receive.”
Following the IPO, however, a series of media articles, including an extensive investigative report published by CNBC on November 5, 2019, revealed that the vast majority of items supposedly “authenticated” by RealReal were actually reviewed only by its copywriters and not by expert authenticators. Thus, many counterfeit items were processed and sold to RealReal customers. As the truth about RealReal’s authentication process began to leak out following the IPO, its stock price declined significantly. RealReal stock still trades for less than the IPO price, and a federal securities class action against RealReal was filed on November 25, 2019 in the U.S. District Court for the Northern District of California. That case remains pending.
If you currently own RealReal common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Brett Stecker toll free at (866) 569-4531 or email Mr. Stecker at firstname.lastname@example.org.
Shuman Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.