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The RealReal, Inc. (NASDAQ: REAL) Investor Securities Class Action Lawsuit 11/25/2019

  • If you purchased shares of The RealReal, Inc. (NASDAQ: REAL), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
The RealReal, Inc.
Security
NASDAQ: REAL

Case Name
The RealReal Shareholder Class Action Lawsuit 11/25/2019
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Northern District of California

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Summary

April 30, 2021 - A second amended complaint was filed.

March 31, 2021 - The court granted in part and denied in part the defendants' motion to dismiss.

May 15, 2020 - A motion to dismiss the amended complaint was filed.

March 31, 2020 - An amended Complaint was filed.

November 25, 2019 - An investor in shares of The RealReal, Inc. (NASDAQ: REAL) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by The RealReal, Inc. in connection with certain allegedly false and misleading statements issued in connection with RealReal’s June 2019 initial public stock offering (the “IPO”).

San Francisco, CA based The RealReal, Inc. operates an online marketplace for consigned luxury goods. The RealReal, Inc. reported that its annual Total Revenue rose from $133.87 million in 2017 to $207.37 million in 2018 and that its Net Loss increased from $52.3 million in 2017 to $75.76 million in 2018. In June 2019, The RealReal, Inc. completed its initial public offering (“IPO”), selling 17.25 million shares at $20.00.

On August 13, 2019, The RealReal, Inc. disclosed that its average order value for second quarter 2019 results was just $452.61, or essentially flat year-over-year, due to promotional activity by retailers. Shares of The RealReal, Inc. (NASDAQ: REAL) declined to as low as $12.58 per share on August 28, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of The RealReal, Inc. (NASDAQ: REAL) common shares, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Registration Statement that was issued in connection with the IPO featured allegedly false and/or misleading statements and/or failed to disclose that the Company’s employees received little training on how to spot fake items, that the Company’s strict quotas on its employees exacerbated product authentication issues, that consequently, the potential for counterfeit or mislabeled items to make it through Company’s authentication process was higher than disclosed, and that 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. When the true details entered the market, the lawsuit claims that investors suffered damages.