Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, announces that a federal class action lawsuit has been filed in the United States District Court for the Northern District of California against RH (formerly Restoration Hardware Holdings, Inc.) (“RH” or “Company”) (NYSE: RH) and several officers and directors for acts taken during the period of March 26, 2015 and June 8, 2016 (the “Class Period”).
Based upon the allegations in the class action, the firm is investigating additional legal claims against the officers and Board of Directors of RH. If you are an affected RH shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at firstname.lastname@example.org or call toll free at (888) 809-2750. There is no cost or fee to you.
In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants failed to disclose during the Class Period that RH was unprepared to launch RH Modern because the Company suffered from grossly inadequate inventory levels and implemented unrealistic deadlines for its vendors.
On March 26, 2015, RH reported its results for the fourth quarter and fiscal year 2014 and publicly touted RH Modern, its new product line, as its “finest work ever” and a “game-changer.” RH also reported that it would have no trouble meeting the inventory needs that the new line would require. On September 10, 2015, RH’s Chief Executive Officer touted RH Modern as “the most important and significant new home furnishings business to be launched in the last 15 or 20 years.” RH repeatedly issued revenue guidance predicting substantial increases in revenue due in significant part to the expected revenue to be generated by RH Modern.
On December 10, 2015, RH announced that it had missed its earnings projections due, in part, to the fact that RH Modern furniture was not fully in-stock. Then, on February 9, 2016, RH announced the surprise resignation of its Chief Operating Officer. On February 24, 2016, RH disclosed disappointing earnings for the fourth quarter of 2015 due to shipping delays of RH Modern furniture. Then, on June 8, 2016, RH significantly reduced its earnings guidance for fiscal 2016, which the company attributed to “accommodations largely due to RH Modern production delays.” RH’s stock fell by $7.66 per share immediately following this announcement.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex business litigation matters.