Hynes Keller & Hernandez, LLC is investigating potential claims against the Board of Directors of RH (NYSE: RH) concerning possible breaches of fiduciary duty. In 2015, RH launched a new product line, specifically, “RH Modern” repeatedly emphasizing its preparedness for the launch pertaining to necessary inventory investments and proper inventory levels, as well as its subsequent performance. On February 24, 2016, RH disclosed negative Q4 2015 results caused in part by “shipping delays as certain vendors are struggling to ramp up production” and that “poor in-stocks also suppressed orders….” Then, on June 8, 2016, RH revealed that it had issued $18 million in customer accommodations “largely as a result of RH Modern production delays” contributing to negative Q1 2016 results.
On February 26, 2018, in a federal securities lawsuit against RH arising from false and misleading statements regarding the launch of RH Modern, the court denied RH’s motion to dismiss.
If you hold RH shares and you would like to discuss your legal rights, please email the firm at info@hkh-lawfirm.com. You can also contact us by calling Michael J. Hynes at (484) 875-3116 or by sending an e-mail to mhynes@hkh-lawfirm.com.