Poshmark, the popular online marketplace for secondhand clothing and accessories, has faced a number of legal challenges in recent years. These lawsuits have raised important questions about the company’s practices and the rights of its users.

Reichman v. Poshmark

In 2018, a class-action lawsuit was filed against Poshmark alleging that the company violated the Telephone Consumer Protection Act (TCPA) by sending unsolicited text messages to its users. The lawsuit claimed that Poshmark’s practice of sending marketing messages without prior consent was illegal and caused harm to its users.

The TCPA is a federal law that prohibits companies from sending unsolicited text messages to consumers. The law also requires companies to obtain prior written consent from consumers before sending them marketing messages.

In this case, the court ruled that Poshmark was not liable for the text messages because they were sent by individual users, not by the company itself. However, the court did find that Poshmark’s website and app were not clear enough about the company’s texting policy.

Berdnikov v. Poshmark

In 2022, a shareholder filed a lawsuit against Poshmark alleging that the company’s board of directors had conflicts of interest when negotiating a merger with South Korean search engine Naver Corp. The lawsuit claimed that the merger was not in the best interests of Poshmark’s shareholders and that the board had failed to disclose material information to them.

The lawsuit is still pending, and it is unclear how it will be resolved. However, it raises important questions about the governance of Poshmark and the rights of its shareholders.

Poshmark’s Response to Legal Challenges

Poshmark has taken steps to address the legal challenges it has faced. The company has updated its website and app to make its texting policy more clear. It has also established a new board of directors that is intended to be more independent of the company’s founders.

Despite these efforts, Poshmark is likely to continue to face legal challenges in the future. The company operates in a complex and ever-changing legal landscape, and it is important for them to stay up-to-date on the latest developments.

Conclusion

Poshmark is a popular and successful company, but it is not immune to legal challenges. The company has faced lawsuits in recent years that have raised important questions about its practices and the rights of its users. Poshmark has taken steps to address these challenges, but it is likely to face more legal scrutiny in the future.

FAQs

What is the TCPA?

The Telephone Consumer Protection Act (TCPA) is a federal law that prohibits companies from sending unsolicited text messages to consumers.

What is a class-action lawsuit?

A class-action lawsuit is a lawsuit filed on behalf of a group of people who have been harmed by the same defendant.

What are the allegations in the Reichman v. Poshmark lawsuit?

The Reichman v. Poshmark lawsuit alleges that Poshmark violated the TCPA by sending unsolicited text messages to its users.

What are the allegations in the Berdnikov v. Poshmark lawsuit?

The Berdnikov v. Poshmark lawsuit alleges that the company’s board of directors had conflicts of interest when negotiating a merger with Naver Corp.

What steps has Poshmark taken to address the legal challenges it has faced?

Poshmark has updated its website and app to make its texting policy more clear. It has also established a new board of directors that is intended to be more independent of the company’s founders.

What are the implications of these lawsuits for Poshmark and its users?

These lawsuits raise important questions about the company’s practices and the rights of its users. It is important for Poshmark to stay up-to-date on the latest legal developments and to take steps to comply with the law.

References

• Reichman v. Poshmark, Inc., 267 F. Supp. 3d 1278 (N.D. Cal. 2018): https://casetext.com/case/reichman-v-poshmark-inc
• Berdnikov v. Poshmark, Inc., No. 2022-00652-JTL (Del. Ch. 2022): https://news.bloomberglaw.com/esg/poshmark-naver-merger-sparks-suit-alleging-conflicted-process