Robbins Arroyo LLP: Restoration Hardware Holdings, Inc. (RH) Misled Shareholders According to a Recently Filed Class
Action
Shareholder rights law firm, Robbins Arroyo LLP, announces that a class action complaint was filed against Restoration Hardware Holdings, Inc. ("RH") (NYSE: RH)
in the U.S. District Court for the Northern District of California, San Francisco Division. The complaint is brought on behalf of
all purchasers of RH securities between March 26, 2015 and June 8, 2016, for alleged violations of the Securities Exchange Act of
1934 by the company's officers and directors. RH, together with its subsidiaries, engages in the retail of home furnishings.
View this information on the firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/restoration-hardware-holdings-inc
Restoration Hardware Accused of Unjustifiably Touting Its RH Modern Product Line
According to the complaint, on March 26, 2015, RH reported its results for the fourth quarter and fiscal year 2014 and publicly
touted its new product line, RH Modern, as its "finest work ever" and a "game-changer." The company further stated that it would
have no trouble meeting the inventory needs that the new RH Modern line would require. On September 10, 2015, RH's Chief Executive
Officer touted RH Modern as "the most important and significant new home furnishings business to be launched in the last 15 or 20
years." Based on these optimistic projections, RH repeatedly issued revenue guidance predicting substantial increases in revenue
due in significant part to the expected revenue to be generated by RH Modern. However, the complaint alleges that, contrary to RH
officials' promising representations, the company was unprepared for the launch of RH Modern because RH suffered from grossly
inadequate inventory levels and implemented unrealistic deadlines for its vendors.
On December 10, 2015, only two months after the official launch of RH Modern, the company announced that it had missed its
earnings projections due, in part, to the fact that RH Modern furniture was not fully in-stock. Then, on February 9, 2016, RH
announced the surprise resignation of its Chief Operating Officer just one year after he had been put in charge of inventory
management. On February 24, 2016, RH disclosed disappointing earnings for the fourth quarter of 2015 due to shipping delays of RH
Modern furniture. Then, on June 8, 2016, RH significantly reduced its earnings guidance for fiscal 2016, which the company
attributed to "accommodations largely due to RH Modern production delays." On this news, RH's stock declined by $7.66 per share to
close at $28.41 per share on June 9, 2016.
Restoration Hardware Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Arroyo LLP
Darnell R. Donahue
(619) 525-3990 or Toll Free (800) 350-6003
DDonahue@robbinsarroyo.com
www.robbinsarroyo.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170207006574/en/