We are investigating Casper Sleep Inc. (CSPR) (“Casper” or the “Company”) for potential violations of the federal securities laws. On or around February 7, 2020, Casper conducted its initial public offering (the “IPO” or “Offering”), selling 8.35 million shares of common stock priced at $12.00 per share. In the lead-up to the IPO, Casper claimed to have significantly improved its profit margins, placing it on a path to profitability. Shortly after the IPO, however, Casper announced downward gross margin trends and substantially impaired operations as a result of an increasingly dire cash flow situation. On April 21, 2020, Casper announced that it was taking significant actions to improve its cash position and business model, notwithstanding the fact that the Company had raised more than $100 million in gross offering proceeds from the IPO less than three months previously. The Company stated that it was reducing the size of its global operations and sales team and completely winding down its European operations, leading to the loss of 21% of its entire corporate workforce globally. These drastic measures were necessitated by the Company’s ballooning losses and deteriorating cash position. Casper also announced the resignation of Gregory Macfarlane, the Company’s Chief Financial Officer and Chief Operating Officer. On May 12, 2020, Casper issued a release providing its financial results for the quarter ended March 31, 2020, disclosing that it had suffered a net loss of $34.5 million, representing a 98% increase year over year, and an adjusted EBITDA loss of $22.9 million, representing a 60% increase year over year. In addition, Casper stated that its gross margin had actually fallen during the quarter by 190 basis points. Also on May 12, 2020, Casper filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission in which the Company disclosed that its cash and cash equivalents had only increased $48.5 million during the quarter, despite the fact that the Company received over $88 million in net cash proceeds from the IPO. The Form 10-Q stated that during the quarter Casper had suffered over $40 million in negative cash flows from operating and investing activities. On June 19, 2020, Casper’s stock price closed at $8.78 per share, representing a decline of nearly 27% from the Offering price.