SAN DIEGO, CA / ACCESSWIRE / March 13, 2017 / The Shareholders Foundation, Inc. announces that a lawsuit was filed in California for certain purchasers of shares of RH (NYSE: RH) over alleged Securities Laws Violations by RH, formerly Restoration Hardware Holdings, Inc.

Investors, who purchased shares of RH (NYSE: RH), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that RH reported false and misleading earnings forecasts based on its new product line, RH Modern, and that RH misrepresented and concealed the problems surrounding the launch of RH Modern, including inventory shortages, shipping delays, and poor construction quality.

On December 10, 2015, RH announced that it had missed its earnings projections.

On February 24, 2016, RH announced disappointing earnings results and disclosed that it would be investing $8-$10 million in customer accommodations during the first quarter due to "higher cancellation rates, shipping delays, and our overall initiative to elevate the customer experience."

Then, on June 8, 2016, RH reported its first quarter fiscal 2016 financial results. In its outlook, RH stated that the Company's results for fiscal 2016 will be impacted by certain short term operational items including costs associated with RH Modern production delays and investments to elevate the customer experience, timing issues related to the transition from a promotional to a membership model, and a more aggressive approach to rationalizing its SKU count and optimizing inventory and that these factors are negatively impacting the Company's fiscal 2016 adjusted diluted EPS outlook by approximately $0.90 to $1.00.

On the same day, RH held a conference call with analysts and investors to discuss the Company's earnings and operations for the first quarter of 2016. During that call, the Company's CFO disclosed that RH had "invested approximately $18 million during the first quarter in customer accommodations and related expenses, largely as a result of RH Modern production delays," nearly twice as much as the Company stated it would spend just months earlier.

Those who purchased RH (NYSE: RH) shares should contact the Shareholders Foundation, Inc.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

CONTACT:

Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108

SOURCE: Shareholders Foundation, Inc.