Robbins LLP Announces that Plaintiffs in Securities Class Action Against RH Holdings, Inc. (NYSE: RH) Win Class Certification
In a hearing on October 1, 2018, the Honorable Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California granted the plaintiffs’ motion to certify a class of investors who acquired RH stock between March 26, 2015 and June 8, 2016. The judge rejected RH’s arguments that the allegations were too complex to qualify for class treatment and noted that “the amount of information that was allegedly hidden from the class was significant.” The ruling is the latest development in a consolidated class action complaint against RH arising from defendants’ misleading statements regarding the launch of RH’s new product line, RH Modern, and the company’s inventory levels. The investors claim that RH aggressively marketed its new line with photo-edited images of products that did not exist, resulting in yearlong delays in delivery and canceled orders from its customers. When RH disclosed its inventory troubles, the company’s stock plunged 75%, erasing more than $3 billion in shareholder value.
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