In re RH, Inc. Securities Litigation
|Court:||United States District Court for the Northern District of California|
|Judge:||Hon. Yvonne Gonzalez Rogers|
|Class Period:||03/26/2015 - 06/08/2016|
|Case Contacts:||Jonathan D. Uslaner|
Securities fraud class action filed on behalf of all purchasers of RH (formerly Restoration Hardware Holdings, Inc.) common stock between March 26, 2015 and June 8, 2016, inclusive (the “Class Period”), alleging claims pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against RH and two of its top officers, Gary Friedman (its long-time CEO and Board Chairman) and Karen Boone (RH’s Co-President and CFO).
Lead Plaintiffs Have Reached a Proposed Settlement for $50 Million
The Court-appointed Lead Plaintiffs Public School Teachers’ Pension & Retirement Fund of Chicago and Arkansas Teacher Retirement System have reached a proposed settlement of this action for $50 million in cash that, if approved by the Court, will resolve all claims in the action.
If you are a member of the Class, your rights will be affected and you may be eligible for a payment from the Settlement. The Class consists of:
all persons and entities who purchased or otherwise acquired the common stock of RH during the period from March 26, 2015 through June 8, 2016, inclusive, except for certain persons and entities who are excluded from the Class by definition (see paragraph 17 of the Notice) or who request exclusion pursuant to the instructions set forth in the Notice (see paragraphs 40-44 of the Notice).
Please read the Notice to fully understand your rights and options. Copies of the Notice and Claim Form can be found on the Case Documents page. You may also visit the Settlement website, RHSecuritiesLitigation.com, for more information about the Settlement.
If you are a member of the Class, in order to be potentially eligible to receive a payment under the proposed Settlement, you must submit a Claim Form postmarked no later than October 1, 2019.
Payments to eligible claimants will be made only if the Court approves the Settlement and a plan of allocation, and only after any appeals are resolved, and after the completion of all claims processing. Please be patient, as this process will take some time to complete.
IMPORTANT DATES AND DEADLINES
October 8, 2019
Claim Filing Deadline. Claim Forms must be postmarked no later than October 8, 2019 to be eligible for a payment from the Settlement.
October 1, 2019
Exclusion Deadline. To exclude yourself from the Class, you must submit a written request for exclusion so that it is received no later than October 1, 2019, in accordance with the instructions in the Notice.
October 1, 2019
Objection Deadline. Any objections to the proposed Settlement, the proposed Plan of Allocation, and/or the motion for attorneys’ fees and expenses, must be submitted or filed no later than October 1, 2019, in accordance with the instructions in the Notice.
October 22, 2019
Settlement Hearing. The Settlement Hearing will be held October 22, 2019 at 2:00 p.m., before the Honorable Yvonne Gonzalez Rogers at Courtroom 1 – 4th Floor of the United States District Court for the Northern District of California, 1301 Clay Street, Oakland, CA 94612. The Settlement Hearing will be held by the Court to consider, among other things, whether the proposed Settlement is fair, reasonable and adequate and should be approved; whether the proposed Plan of Allocation is fair and reasonable and should be approved; and whether Lead Counsel’s motion for attorneys’ fees and expenses should be approved.
On April 26, 2017, the Court appointed the Public School Teachers’ Pension & Retirement Fund of Chicago and Arkansas Teacher Retirement System as Lead Plaintiffs for the Class and BLB&G as Lead Counsel. On June 12, 2017, Lead Plaintiffs filed the operative Complaint.
The Complaint alleges that RH and certain of its top officers made false and misleading statements to investors, and omitted material facts, regarding the launch of RH’s new product line, RH Modern, and the Company’s inventory levels. In response to Defendants’ statements, the price of RH’s shares traded at artificially-inflated levels, reaching a high of $106.49 per share during the Class Period. When the truth emerged in a series of partial disclosures, the price plunged to less than $27 per share.
Defendants filed a motion to dismiss the Complaint, which Lead Plaintiffs opposed. On February 26, 2018, the court denied Defendants’ motion to dismiss.
Plaintiffs filed their motion for Class certification on June 22, 2018. On October 11, 2018, the Court issued an order certifying the Class. Defendants petitioned the United States Court of Appeals for the Ninth Circuit to reverse the Order. On January 24, 2019, the Ninth Circuit denied Defendants' petition.
Following multiple mediation sessions, the Parties reached an agreement in principle to settle the Action for $50,000,000 on March 21, 2019.
On May 6, 2019, the Parties entered into the Stipulation and Agreement of Settlement (the “Stipulation”), which sets forth the full terms and conditions of the Settlement, and Lead Plaintiffs filed their motion for preliminary approval of the Settlement with the Court. On June 21, 2019, the Court entered its Order Preliminarily Approving Settlement and Providing for Notice, which scheduled a hearing for October 22, 2019 to consider final approval of the Settlement and related matters.
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