Rent the Runway, Inc. (NASDAQ: RENT) has agreed to a $9 million settlement to resolve a class action lawsuit related to its initial public offering, according to a press release statement from the company.

The settlement, formalized in a Stipulation and Agreement of Settlement dated September 3, 2026, stems from a lawsuit filed November 14, 2022 in the Eastern District of New York. The case, Rajat Sharma v. Rent the Runway, Inc., et al., alleged that the company and certain officers, directors, and IPO underwriters violated Sections 11 and 15 of the Securities Act of 1933 by making materially misleading statements and omitting material facts about the company's growth at the time of its IPO.

Under the terms of the proposed settlement, Rent the Runway would pay $6 million in cash and $3 million in Class A common stock, though the company retains the option to substitute cash for all or part of the stock component. Of the $6 million cash portion, approximately $3.1 million would come from the company directly, with the remaining $2.9 million contributed by its insurers.

The settlement does not include any admission of liability, wrongdoing, damages, negligence, or fault by the company. The agreement remains subject to preliminary and final approval by the District Court, and there is no guarantee the court will approve the settlement on its current terms.