Rh (RH) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Rh’s incorporation documents establish the Court of Chancery of Delaware and federal district courts as exclusive forums for certain legal disputes, potentially hindering stockholders’ forum choice for grievances involving the company’s internal affairs and fiduciary duties. This may discourage litigation in more favorable jurisdictions, albeit the enforceability of such provisions remains uncertain. Consequently, Rh may face increased litigation costs if these provisions are challenged or deemed unenforceable, adversely affecting the company’s financial position and operational focus.
The average RH stock price target is $328.40, implying -5.70% downside potential.
To learn more about Rh’s risk factors, click here.
