NEW YORK, Nov. 26, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The RealReal, Inc. (“RealReal” or the “Company”) (NASDAQ: REAL). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether RealReal and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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In June 2019, RealReal conducted its initial public offering (“IPO”), issuing 17.25 million shares of common stock priced at $20.00 per share.
Then, on November 5, 2019, CNBC published an investigate report revealing that RealReal’s authentication process was not as robust as the Company had 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.” CNBC’s investigative report also found that copywriters, who received “little training on how to spot fakes and were hired to write descriptions of the items to post on the website,” were tasked with authenticating items that went on the Company’s site.
On this news, RealReal’s stock price fell $2.36 per share, or 10.86%, to close at $19.37 per share on November 5, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 9980