Kirby McInerney LLP Announces Investigation of Shareholder Claims Against Arhaus, Inc. (ARHS)

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against Arhaus, Inc. for possible violations of federal securities laws and unlawful business practices [1] Financial Reporting Issues - On April 29, 2024, Arhaus filed a Current Report on Form 8-K with the SEC, indicating that its previously issued unaudited condensed consolidated financial statements should no longer be relied upon due to balance sheet errors [1] - The errors identified were related to cash receipts from landlord reimbursements being incorrectly included in property, furniture, and equipment, net, which also affected the cash flows in the statement of cash flows for the nine months ended September 30, 2023 [1] - The estimated impact of these errors is 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 [1] Market Reaction - Following the announcement of the financial reporting issues, the price of Arhaus shares declined by $0.80 per share, or approximately 5.9%, from $13.46 on April 29, 2024, to close at $12.66 on April 30, 2024 [1]