Daily News
From Home Furnishing Business
Law Firm Investigating Shareholder Claims Against RH
June 27,
2018 by Jason Schneider in Industry, Legal 
The Shuman Law Firm has announced that it is investigating potential shareholder claims against certain officers and directors of home furnishings retailer RH (NYSE: RH).
The firm’s investigation relates to allegations raised in a class action complaint 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."
RH would later disclose 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 initial public offering.
RH would also significantly reduce its earnings guidance for fiscal 2016, which the company attributed to “accommodations largely due to RH Modern production delays.”
On Feb. 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 the class action, paving the way for litigation to proceed.