Settlement Reached for $9 Million with Rent the Runway, Inc.

Labaton Keller Sucharow LLP serves as Court-appointed Lead Counsel in a securities class action pending in the U.S. District Court for the Eastern District of New York against Rent the Runway, Inc. (RTR or the Company) and certain officer, director, and underwriter defendants (together with RTR, Defendants).  RTR is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories.

The action asserts claims against all Defendants under Sections 11 and 12(a)(2) of the Securities Act of 1933.  As alleged in the Complaint, Defendants allegedly made materially false and misleading statements and omissions in the Offering Documents for the Company’s October 27, 2021 initial public offering (IPO) concerning: (1) demand for the Company’s subscriptions (the Demand Statement Allegations); (2) the Company’s shipping costs (the Shipping Cost Statement Allegations); and (3) thefts of and insurance coverage for the Company’s inventory (the Theft and Insurance Statement Allegations).

On September 25, 2024, the Court issued an opinion granting in part and denying in part Defendants’ motion to dismiss the Complaint (the MTD Opinion).  The MTD Opinion granted Defendants’ motion to dismiss with respect to the Complaint’s claims based upon the Demand Statement Allegations and claims based on Items 303 and 105 of SEC Regulation S-K (except to the extent the Complaint’s Item 303 claim was based on the Theft and Insurance Statement Allegations), but otherwise denied the motion with respect to the claims based on the Shipping Cost Statement Allegations and Theft and Insurance Statement Allegations.

On October 9, 2024, Defendants served a Motion for Reconsideration of Order Denying in Part Defendants’ Motion to Dismiss or, Alternatively, Certification under 28 U.S.C. §1292(b) (the Reconsideration Motion), which Lead Plaintiffs opposed.  On September 12, 2025, the Court issued an order granting in part and denying in part the Reconsideration Motion. 

In July 2026, the Parties reached an agreement to settle the matter, pending court approval, for $9,000,000, which will consist of a Cash Settlement Amount of $6,000,000 and a Stock Component Amount of $3,000,000.  The Parties executed the Stipulation and Agreement of Settlement on September 3, 2026. On September 10, 2026, the Court issued an order preliminarily approving the proposed Settlement.

The case is Sharma v. Rent the Runway, Inc., et al., No. 1:22-cv-06935-OEM-SDE (E.D.N.Y.).  Labaton Keller Sucharow represents Lead Plaintiffs Delaware Public Employees’ Retirement System and Denver Employees Retirement Plan.

Submit Claim Form

If you purchased or acquired the publicly traded Class A common stock of RTR pursuant and/or traceable to the Offering Documents for RTR’s IPO (which occurred in October 2021) and were damaged thereby, you may be entitled to a payment from the class action Settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator no later than December 1, 2026. Please read the linked Notice for all your options and deadlines.

Settlement Hearing

The Court will hold the final Settlement Hearing on December 15, 2026, at 10:30 a.m. (ET) at the United States District Court for the Eastern District of New York, Theodore Roosevelt United States Courthouse, 225 Cadman Plaza East, Courtroom 6C South, Brooklyn, New York 11201.

If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com; (888) 219-6877; or the Claims Administrator at (877) 388-1723. Additional information about the Settlement can be found at www.RentTheRunwaySecuritiesSettlement.com.