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NEW YORK, Jan. 08, 2023 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a law firm recognized nationwide for its focus on shareholder rights, is alerting investors that class action lawsuits have been filed on behalf of stockholders of four major companies: Rent the Runway, Inc. (NASDAQ: RENT), Core Scientific, Inc. (NASDAQ: CORZ), Torrid Holdings, Inc. (NYSE: CURV), and Olaplex Holdings, Inc. (NASDAQ: OLPX). Stockholders have specific deadlines, outlined below, to petition the court for the role of lead plaintiff. For comprehensive details about each case, please refer to the provided link.

Exploring the Case of Rent the Runway, Inc. (NASDAQ: RENT)

Class Period: Corresponding to the company’s IPO in October 2021

Lead Plaintiff Deadline: January 13, 2023

Rent the Runway, Inc. (RTR) operates as an innovative e-commerce platform that revolutionizes the way consumers access high-end fashion by allowing them to rent, subscribe, or purchase designer apparel and accessories. RTR boasts an extensive selection of luxury items, including elegant evening wear, trendy accessories, and versatile casual pieces such as workwear, denim, maternity attire, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski gear, home goods, and kidswear. The company collaborates with over 750 prestigious brand partners to curate a diverse inventory for its clientele.

Customers can enjoy RTR’s extensive designer inventory through multiple avenues, including an ongoing subscription model that provides access to their “unlimited closet.” Additionally, customers have the flexibility to rent items on an a-la-carte basis through RTR’s “reserve offerings.” Subscribers and casual customers alike also have the opportunity to purchase items through RTR’s “resale offering.” Notably, in the first half of 2021, subscription revenue accounted for a remarkable 83% of RTR’s total revenue, while reserve rental revenue and resale revenue contributed 7.6% and 9.4%, respectively, showcasing the robust demand for their services.

The COVID-19 pandemic, which began in March 2020, had a profound impact on RTR’s business operations. As a provider of luxury clothing, the company faced significant challenges due to restrictions such as stay-at-home orders and a marked decrease in social events that affected its customer base. Between fiscal years 2019 and 2020, RTR experienced a staggering revenue decline of nearly 40%, with total revenues plummeting to $157.5 million and active subscribers falling by nearly 60%, dropping to just 54,797. This period presented a critical challenge for the company as it navigated the shifting market landscape.

In the months leading up to the IPO, RTR claimed it was experiencing a resurgence as pandemic-related concerns eased, lockdown measures were lifted, and its customers began to engage in more social activities. For instance, as of September 30, 2021, RTR reported a significant increase in active subscribers, reaching 111,732, which signified an impressive 104% growth since the beginning of fiscal year 2021. Additionally, the company highlighted that its revenues for the second quarter of 2021 had surged to $46.7 million, reflecting a remarkable 62% year-over-year growth.

On October 4, 2021, RTR filed a registration statement on Form S-1 with the SEC for its IPO, which underwent several amendments and was eventually declared effective on October 26, 2021. Following this, on October 27, 2021, RTR filed a prospectus related to the IPO on Form 424B4, which integrated and was part of the Registration Statement. The company successfully sold 17 million shares of its Class A common stock at $21 per share, generating $357 million in gross offering proceeds, primarily aimed at repaying debts owed to certain private equity backers.

For additional insights on the Rent the Runway class action, please visit: https://bespc.com/cases/RENT

Understanding the Core Scientific, Inc. (NASDAQ: CORZ) Class Action

Class Period: January 3, 2022 – October 26, 2022

Lead Plaintiff Deadline: January 13, 2023

Core Scientific is a prominent provider of blockchain computing data center solutions and digital asset mining services. The company engages in mining digital assets for its own account while also offering hosting services to other large-scale miners. Core Scientific transitioned to a public company through a business combination with Power & Digital Infrastructure Acquisition Corp. (“XPDI”), successfully finalizing the merger on January 19, 2022.

On March 3, 2022, Culper Research published a report regarding Core Scientific, alleging that the company had significantly overstated its profitability, and raised concerns regarding the financial stability of its largest customer, which was said to lack the resources to fulfill its contractual obligations for mining rigs.

In response to this revelation, Core Scientific’s stock experienced a notable decline, dropping $0.72 or 9.4% to close at $6.98 on the same day, leading to investor losses. Following this, on September 28, 2022, Celsius Network LLC and its affiliates filed a motion in bankruptcy proceedings, alleging that Core Scientific had repeatedly violated automatic stay provisions by failing to meet contractual obligations, which further exacerbated investor concerns.

On the heels of this news, Core Scientific’s stock price fell again by $0.15, or 10.3%, closing at $1.30 on September 29, 2022, compounding the injuries suffered by investors. Subsequently, on October 27, 2022, prior to the market opening, Core Scientific disclosed serious doubts about its financial viability, stating, “given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern,” while also revealing that it was exploring alternative capital structures. Notably, the company’s bitcoin holdings dwindled from 1,051 bitcoins as of September 30, 2022, to just 24 bitcoins.

Throughout the Class Period, Core Scientific’s management made several materially false or misleading statements and failed to disclose critical adverse facts about the company’s business and operations. These omissions included rising power costs due to the expiration of a favorable pricing agreement, the financial struggles of its largest customer, Gryphon, and non-compliance with hosting service agreements with Celsius, among others. These factors collectively cast doubt on the company’s profitability and overall financial health, leaving investors misinformed about the true state of its operations.

For more information regarding the Core Scientific class action, please visit: https://bespc.com/cases/CORZ

Insights into the Torrid Holdings, Inc. (NYSE: CURV) Lawsuit

Class Period: Relating to the company’s IPO in July 2021

Lead Plaintiff Deadline: January 17, 2022

Torrid operates as a direct-to-consumer brand specializing in women’s plus-size apparel and intimate wear. Leading up to its IPO, the company reported rapid sales growth and a notable recovery from a temporary downturn caused by the initial COVID-19 pandemic phases that began in March 2020.

However, as outlined in the complaint, the Registration Statement for the IPO created a misleading narrative that Torrid’s growth trajectory would continue post-IPO. It failed to disclose crucial adverse information, including that the surge in demand during the first half of 2021 was primarily a temporary phenomenon driven by changes in consumer behavior due to the pandemic and government stimulus, which were not expected to sustain. Additionally, severe supply chain disruptions, exacerbated by the Delta variant emergence in May 2021, left Torrid struggling with inventory levels that did not meet consumer demand for the fiscal third quarter of 2021.

As a result of these challenges, late inventory arrivals hindered the company’s ability to match consumer buying trends, leading to an increased risk of markdowns and promotional activities to clear out unsold inventory. Further complicating matters, Torrid’s CFO planned to retire shortly after the IPO, adding to investor uncertainty. These factors collectively resulted in a misrepresentation of the company’s true financial and operational status at the time of the IPO, leading to a significant drop in stock prices.

By the end of September 2022, Torrid’s stock price had plummeted to a low of just $4.06 per share, representing a staggering decline of over 80% from its initial IPO price.

For further details on the Torrid class action, please visit: https://bespc.com/cases/CURV

Analyzing the Olaplex Holdings, Inc. (NASDAQ: OLPX) Class Action

Class Period: Related to the company’s IPO on September 30, 2021

Lead Plaintiff Deadline: January 17, 2022

Founded in 2014 and headquartered in Santa Barbara, California, Olaplex specializes in manufacturing and selling premium hair care products. The company offers a range of shampoos and conditioners designed for the treatment, maintenance, and protection of hair. Olaplex claims to operate within the “prestige segment” of the haircare market, anticipated to be the fastest-growing segment globally from 2020 to 2025.

On August 27, 2021, Olaplex filed a registration statement on Form S-1 with the SEC for its IPO, which was declared effective by the SEC on September 29, 2021. Shortly thereafter, on October 1, 2021, Olaplex filed a prospectus on Form 424B4, which was part of the Registration Statement.

Through the IPO process, Olaplex issued 73,700,000 shares of its common stock to the public at an offering price of $21.00 per share, resulting in estimated proceeds of approximately $1.47 billion after underwriting discounts and commissions. However, the Offering Documents were found to be negligently prepared, containing misleading statements or omitting necessary facts. Specifically, the documents failed to accurately portray the intensity of macroeconomic pressures and competition within the haircare market, which were more severe than what was represented to investors. Consequently, the company’s ability to maintain its sales and revenue momentum was called into question, casting doubt on its projected financial and operational growth.

On September 29, 2022, an analyst from Piper Sandler downgraded Olaplex’s rating from Overweight to Neutral, citing growing competition and misinformation as significant threats to the company’s future. The analyst expressed concerns that investments in marketing and education would be necessary to counter these challenges and highlighted limited potential for valuation upside amidst these risks.

Following these developments, Olaplex’s stock price fell by $1.33 per share, or 12.15%, closing at $9.62 per share on September 29, 2022. On October 18, 2022, Olaplex issued a press release revising its guidance for the 2022 fiscal year, now estimating revenues between $704 million and $711 million, a significant drop from its prior guidance of $796 million to $826 million. This revision was attributed to a slowdown in sales momentum due to macroeconomic pressures, increased competition, and inventory rebalancing among customers, all of which contributed to the company’s challenges.

In the wake of this news, Olaplex’s stock price plummeted by $5.55 per share, or 56.69%, closing at $4.24 per share on October 19, 2022. As of the filing of this complaint, Olaplex common stock continues to trade below the offering price of $21.00 per share, resulting in substantial losses for investors.

Due to the wrongful actions and omissions by the defendants, along with the significant decline in Olaplex’s market value, both the Plaintiff and other class members have incurred substantial losses and damages.

For more information on the Olaplex class action, please visit: https://bespc.com/cases/OLPX

Learn More About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. stands as a nationally recognized law firm with offices strategically located in New York, California, and South Carolina. The firm is dedicated to representing both individual and institutional investors in various legal matters, including commercial, securities, derivative, and complex litigation across state and federal courts nationwide. To learn more about the firm and its services, please visit www.bespc.com. This communication is classified as attorney advertising, and prior results do not guarantee similar outcomes.

Reach Out for More Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com