Rent the Runway, Inc. has entered into a Stipulation and Agreement of Settlement to resolve a securities class action lawsuit related to its initial public offering. The filing, dated September 3, 2026, details the agreement to pay a total settlement consideration of $9,000,000 to settle claims filed in the Eastern District of New York.
The lawsuit, titled Rajat Sharma v. Rent the Runway, Inc., et al., was filed on November 14, 2022, by a purported stockholder. The complaint alleged that the defendants violated Sections 11 and 15 of the Securities Act of 1933 by making materially misleading statements and omitting material facts concerning the Company's growth at the time of the IPO.
The settlement consists of two components: a cash payment of $6,000,000 and shares of Class A common stock valued at $3,000,000. The cash portion will be split between the Company and its insurers, with Rent the Runway contributing approximately $3,100,000 and insurers contributing approximately $2,900,000.
The agreement stipulates that the settlement resolves all claims against the Company without any admission of liability, wrongdoing, damages, negligence, or fault. The settlement is contingent upon approval by the District Court, and there is no assurance that the court will grant final approval on the proposed terms.
