The RealReal, Inc.
Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of The RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: REAL) between June 24, 2019 and November 25, 2019, inclusive (the “Class Period”).
If you purchased RealReal securities, and/or would like to discuss your legal rights and options, please click “Join Class Action” above.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of The RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: REAL) between June 24, 2019 and November 25, 2019, inclusive (the “Class Period”). The lawsuit filed in the United States District Court for the Northern District of California alleges violations of the Securities Act of 1933.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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 the Company’s authentication process was higher than disclosed; and (4) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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 or over 19% over the next two trading days to close at $19.37 on November 6, 2019. Since the IPO, and as a result of the disclosure of material adverse facts omitted from RealReal’s Registration Statement, RealReal’s stock price has fallen below its IPO price, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than January 24, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.