NEW YORK, Nov. 28, 2023 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of ThredUp Inc. (“ThredUp” or the “Company”) (NASDAQ: TDUP). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether ThredUp and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around March 26, 2021, ThredUp conducted its initial public offering (“IPO”), selling 12 million shares of its Class A common stock priced at $14.00 per share.
Then, on November 6, 2023, ThredUp issued its third quarter (“Q3”) 2023 financial results, reporting Q3 GAAP earnings-per-share of –$0.17, missing consensus estimates by $0.01, and Q3 revenue of $82 million, missing consensus estimates by $0.95 million. The following day, The Motely Fool published an article entitled “Why ThredUp Stock Plunged 36% Today”, noting, among other things, that “[t]he problem for ThredUp is that revenue growth hasn’t led to the kind of operating margins that investors hoped for” while the Company “keeps burning cash,” and that “ThredUp’s concept, selling products on consignment and secondhand, is interesting, but it hasn’t proven to be profitable.”
On this news, ThredUp’s stock price fell $1.15 per share, or 33.43%, to close at $2.29 per share on November 7, 2023, representing an 83.64% decline from the Company’s IPO price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
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CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
