Arhaus, Inc. (NASDAQ: ARHS) is currently under investigation by Pomerantz LLP for potential securities fraud and other unlawful business practices. Investors who have shares in Arhaus are advised to get in touch with Danielle Peyton at [email protected] or call 646-581-9980, extension 7980.
An initial public offering (IPO) was conducted by Arhaus on November 4, 2021, during which they sold 12.9 million shares for $13.00 each. Unfortunately, on April 29, 2024, Arhaus issued a press release revealing that their previously issued unaudited condensed consolidated financial statements included in Amendment No. 1 to the Company’s Quarterly Report on Form 10-Q/A for the period ended September 30, 2023 (the ‘Q3 Form 10-Q/A’) should no longer be relied upon due to errors that have been discovered.
The errors were related to the unaudited condensed consolidated balance sheet as of September 30, 2023, specifically regarding certain cash receipts from landlord reimbursements that were incorrectly included in property, furniture, and equipment. These errors also had an impact on inaccurate cash flows ascribed to operating and investing activities in the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2023.
Arhaus estimates that these errors will result in an increase in net cash provided by operating activities and an increase in net cash used in investing activities ranging from approximately $1 million to $5 million in the unaudited condensed consolidated statement of cash flows for the aforementioned period. The company has stated that it will restate its financial statements for the affected period as soon as possible.
Following this news, Arhaus’s stock price dropped by $0.80 per share, or 5.94%, and closed at $12.66 per share on April 30, 2024.
Pomerantz LLP, a renowned law firm specializing in corporate, securities, and antitrust class litigation, is known for fighting for the rights of victims of securities fraud and corporate misconduct. With offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, the firm has a long-standing history of recovering substantial damages on behalf of class members.
Please note that this content does not constitute legal advice and attorney advertising. Past outcomes are not indicative of future results.
For any inquiries regarding this matter, please contact Danielle Peyton at Pomerantz LLP via email at [email protected] or by phone at 646-581-9980, extension 7980.
Source: Pomerantz LLP
Arhaus, Inc. (NASDAQ: ARHS) is currently facing a securities fraud investigation led by Pomerantz LLP. The investigation is focused on potential fraudulent activities and other unlawful business practices conducted by Arhaus. Investors who hold shares in Arhaus are advised to contact Danielle Peyton at [email protected] or call 646-581-9980, extension 7980 for more information.
One important development in the case is Arhaus’s initial public offering (IPO) conducted on November 4, 2021. The company sold 12.9 million shares for $13.00 each during the IPO. However, on April 29, 2024, Arhaus released a press statement disclosing errors in their previously issued unaudited condensed consolidated financial statements for the period ending September 30, 2023. As a result, these financial statements should no longer be relied upon.
The errors primarily revolve around the unaudited condensed consolidated balance sheet as of September 30, 2023. Specifically, certain cash receipts from landlord reimbursements were incorrectly included in the property, furniture, and equipment section, leading to inaccurate cash flows in the unaudited condensed consolidated statement of cash flows for the nine months ending September 30, 2023.
Arhaus has estimated that these errors will result in an increase in net cash provided by operating activities and an increase in net cash used in investing activities of approximately $1 million to $5 million in the unaudited condensed consolidated statement of cash flows for the mentioned period. The company has committed to restating its financial statements for the affected period as soon as possible.
Upon the release of this news, Arhaus’s stock price experienced a decline of $0.80 per share, or 5.94%, closing at $12.66 per share on April 30, 2024.
This investigation is being conducted by Pomerantz LLP, a prestigious law firm with expertise in corporate, securities, and antitrust class litigation. The firm has a significant track record of advocating for the rights of victims of securities fraud and corporate misconduct. With offices in major cities like New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, Pomerantz LLP has a global presence and has successfully recovered substantial damages on behalf of class members in numerous cases.
It is important to note that the information provided here does not constitute legal advice and is considered attorney advertising. Past outcomes in similar cases do not guarantee future results.
For further inquiries or information regarding this matter, individuals are encouraged to reach out to Danielle Peyton at Pomerantz LLP via email at [email protected] or by phone at 646-581-9980, extension 7980.