GRABAR LAW OFFICE INVESTIGATES CLAIMS AGAINST OFFICERS AND DIRECTORS OF TORRID HOLDINGS INC. (NYSE: CURV)
Grabar Law Office is investigating claims on behalf of Torrid Holdings Inc. (NYSE: CURV) shareholders. The investigation concerns whether certain officers and directors of Torrid Holdings have breached their fiduciary duties owed to the company.
A securities fraud class action complaint alleges that the Registration Statement for the IPO created the misleading impression that Torrid’s impressive growth trajectory was then continuing and expected to continue following the IPO. Specifically, the securities fraud class action complaint alleges the Registration Statement failed to disclose that the following adverse facts existed at the time of the IPO: (i) 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; (ii) 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; (iii) Torrid was running materially below historical inventory levels as a result of supply chain disruptions; (iv) as a result, Torrid did not have sufficient inventory to meet expected consumer demand for its fiscal third quarter of 2021; (v) as a result, 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; (vi) Torrid’s CFO planned to retire shortly after the IPO; and (vii) as a result of the above, the Registration Statement’s representations regarding Torrid’s historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, financial results, and trajectory of the Company at the time of the IPO, and were materially false and misleading and lacked a reasonable factual basis.
Current Torrid shareholders who have held Torrid stock since on or shortly after Torrid’s July 1, 2021 IPO date can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, you are encouraged to contact us at firstname.lastname@example.org, or call Joshua Grabar at 267-507-6085.