According to the law firm press release, RH is a leading luxury retailer in the home furnishing marketplace. The Company operates an integrated business with multiple channels of distribution including over 70 retail stores in the United States, source book magazines and websites. In 2015, RH announced a new product line, RH Modern.
The Complaint 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 made false and/or misleading statements and/or failed to disclose that: (i) contrary to Defendants’ representations that the Company was prepared for the launch of RH Modern, that inventory was adequate, and that customers would not face shipping delays, in reality, the Company had severely inadequate inventory and was woefully unprepared to launch RH Modern; and (ii) as a result, RH’s public statements were materially false and misleading at all relevant times.
On April 26, 2017, the Court appointed Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on June 12. Defendants filed a Motion to Dismiss the consolidated Complaint on August 2. On February 26, 2018, the Court issued an Order denying Defendants' Motion to Dismiss. On June 22, Plaintiffs filed a Motion to Certify a Class in this action. On October 11, the Court issued an Order granting Plaintiffs' Motion for Class Certification. On March 25, 2019, the parties stipulated that they had entered into an agreement in principle to a class-wide Settlement. The parties entered into a Stipulation and Agreement of Settlement on May 6. On June 21, the Court issued an Order preliminarily approving the Settlement. On October 25, the Court granted final approval of the Settlement and entered Final Judgment.