SAN DIEGO & CORTE MADERA, Calif.--(BUSINESS WIRE)-- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of RH (NYSE: RH) breached their fiduciary duties to shareholders. RH, together with its subsidiaries, operates as a retailer in the home furnishings market.
Investors filed a consolidated class action complaint against RH for alleged violations of the Securities Exchange Act of 1934. The complaint alleges that RH repeatedly touted its business prospects, including the introduction of its "RH Modern" brand, which RH described as "the most important… new home furnishings business to be launched in the last 15 or 20 years." It therefore came as a surprise to investors when RH revealed that the company faced production delays and that it had issued $18 million in customer accommodations. On this news, RH's stock plunged over 21% on the highest trading volume in history since its IPO. On February 26, 2018, the Honorable Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California denied RH's motion to dismiss, paving the way for litigation to proceed.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/rh-inc
RH Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180228006412/en/
Source: Robbins Arroyo LLP