![]() In a second amended complaint filed on April 30, Sanders and named plaintiffs Nubia Lorelle and Garth Wakeford (the “plaintiffs”) reiterated many of the foundational allegations that they made in their earlier complaints, namely, that TRR made false and misleading statements in its registration documents prior to its 2019 IPO, and that these “false and misleading statements continued in the months following the IPO, thereby artificially inflating the stock’s market price.” For instance, despite TRR’s claims in its 2019 IPO filings that its “highly trained experts build trust in our buyer base by thoroughly inspecting the quality and condition of, and authenticating, every item we receive,” the plaintiffs claim that the company’s “authentication process fell far short of its description, only a small proportion of the thousands of items processed by each day actually go to its small group of expert authenticators – specifically only certain brands and items deemed to face a particularly high risk of counterfeiting.” in an opinion and order on March 31 (while allowing other claims to remain in place), lead plaintiff Michael Sanders was granted leave to amend his complaint to plead “more particular facts” in order to make his case. ![]() A shareholder of The RealReal (“TRR”) is attempting to bulk up his stock-drop case against the luxury resale entity, arguing that the company, an array of its executives, and its big-name initial public offering (“IPO”) underwriters misled investors about the nature of its authentication process, thereby, “artificially inflating” the price of its shares and then damaging those same shareholders “when the artificial inflation dissipated.” On the heels of a California federal court agreeing to toss out part of the federal securities action against TRR and co. ![]()
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