Le Lézard
Classified in: Covid-19 virus
Subject: Lawsuit

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Torrid Holdings Inc. (CURV) Investors


The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Torrid Holdings Inc. ("Torrid" or the "Company") (NYSE: CURV) common stock traceable to the Company's July 2021 initial public offering (the "IPO"). Torrid investors have until January 17, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

Torrid conducted its initial public offering ("IPO") in July 2021, selling 12.65 million shares at $21 per share.

On December 8, 2021, Torrid announced its third quarter 2021 financial results, and disclosed that sales had increased only 14% year-over-year, compared to a reported 108% increase for the first quarter of 2021. The Company also lowered its annual guidance. On this news, Torrid's stock price fell $4.37, or 27.9%, to close at $11.28 per share on December 9, 2021.

On January 10, 2022, Torrid issued a press release further lowering the Company's sales and earning guidance. On this news, Torrid's stock price fell $2.50, or 23.4%, to close at $8.20 per share on January 10, 2022, there injuring investors further.

Then, on March 17, 2022, Torrid released its fourth quarter 2021 financial results, revealing that sales growth had continued to decelerate to just 4.5% growth during the quarter, with the Company's adjusted EBITDA margin falling to only 9% of net sales due to supply chain disruptions and increased transportation and product costs.

On September 7, 2022, Torrid released its second quarter 2022 financial results, revising the Company's annual 2022 net sales guidance from a range of $1.3 billion to $1.365 billion to a range of $1.26 billion to $1.3 billion, as well as revising its annual 2022 adjusted EBITDA guidance from a range of $195 million to $220 million to a range of $160 million to $175 million.

By the end of September 2022, Torrid's stock price fell to a low of $4.06 per share, more than 80% below the IPO price.

The complaint filed in this class action alleges that 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 failed to disclose to investors: (1) that in the first half of 2021 Torrid had experienced a temporary surge in demand as a result of changed consumer behaviors in response to the COVID-19 pandemic and government stimulus and that such ephemeral demand trends had dissipated and were not internally projected to continue following the IPO; (2) that Torrid was suffering from severe supply chain disruptions caused by the emergence of the Delta variant of COVID-19, which had first emerged in May 2021; (3) that Torrid was running materially below historical inventory levels as a result of supply chain disruptions; (4) that, as a result of the foregoing, Torrid did not have sufficient inventory to meet expected consumer demand for its fiscal third quarter of 2021; (5) that, as a result of the foregoing, late inventory arrival had materially impaired the Company from effectively matching consumer buying trends, creating an undisclosed risk of increased markdowns and promotional activities necessary to sell undesirable inventory; (6) that Torrid's CFO planned to retire shortly after the IPO; and (7) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Torrid common stock during the Class Period, you may move the Court no later than January 17, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Torrid common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.


These press releases may also interest you

at 21:45
North America is accounted for a major share of  42% of the global bone cement market, with the US being the major revenue contributor. The high share of the market is due to the widespread adoption of minimally invasive techniques such as joint...

at 21:30
High Tide Inc. ("High Tide" or the "Company") , a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, filed its year-end audited 2022 financial results on January 30, 2023, the highlights of which are...

at 21:30
North America will account for 34% of the global Laboratory shaker market  North America will account for 34% of the market growth of the global laboratory shaker market. Factors such as the increased investments in R&D in the biomedical and life...

at 21:05
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against National Vision Holdings, Inc. ("National Vision" or the "Company") in the United States District Court...

at 20:45
The printers market report provides critical information and factual data, with a qualitative and quantitative study of the market based on market drivers and limitations as well as future prospects....

at 20:30
According to Technavio, the global women's health app market size is estimated to grow by USD 2.9 billion from 2021 to 2026. The market is estimated to grow at a CAGR of 20.1% during the forecast period. Moreover, the growth momentum will accelerate....



News published on 30 november 2022 at 11:50 and distributed by: