RH investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, RH is a leading luxury retailer in the home furnishings 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.
The Class Period commences on March 26, 2015, the day the company reported its results for the fourth quarter and fiscal year 2014, and announced the release of RH Modern later in the year.
The complaint alleges that, on December 10, 2015, the company announced that it had missed its earnings projections due, in part, to the fact that RH Modern furniture was not fully in-stock. Following this news, shares of RH declined by approximately $9 per share, closing at $78.65 per share on December 14, 2015.
Then, on February 9, 2016, the company announced the surprise resignation of its Chief Operating Officer, Kenneth Dunaj, who just one year prior had been put in charge of inventory management.
On February 24, 2016, the company announced disappointing earnings for the fourth quarter of 2015 due to shipping delays of the RH Modern furniture. Following this news, RH stock declined by $13.43 per share.
Finally, on June 8, 2016, the company significantly reduced its earnings guidance for fiscal 2016, which the company attributed to “accommodations largely due to RH Modern production delays.” Following this news, RH stock declined by $7.66 per share.
The complaint alleges that, contrary to the 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. Indeed, the Company knowingly placed orders over vendors’ capacity, and gave vendors unrealistic deadlines, leading to the Company having grossly inadequate RH Modern inventory instock at the time of the launch. Even when vendors were able to manufacture RH Modern furniture, it was often damaged or unfinished as vendors had to rush to meet unrealistic deadlines, which led to numerous customers canceling their orders or returning defective RH Modern furniture.
If you are a member of the class described above, you may no later than April 3, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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