Shareholder Alert: Robbins LLP Announces Baozun, Inc. (BZUN) Sued for Misleading Shareholders
December 16 2019 - 5:44PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of Baozun, Inc. (NASDAQ: BZUN) filed a class action
complaint for alleged violations of the Securities Exchange Act of
1934 between March 6, 2019 and November 20, 2019. Baozun provides
brand e-commerce service to brand partners in the People's Republic
of China.
If you suffered a loss as a result of Baozun's misconduct, click
here.
Baozun, Inc. (BZUN) Accused of Misleading
Shareholders
According to the complaint, in March 2019, Baozun touted its
increase of its brand partners from 152 to 185 and stated that the
Company was "confident in [its] strategy and the effectiveness of
[its] operations, and expect Gross Merchandise Volume ("GMV") to
grow by 40% to 50% year-over-year and total revenues to increase to
over RMB7.2 billion." Regarding its brand partners, Baozun stated
it selects brand partners in product categories that the Company
believes will "optimize [its] revenue mix and improve [its]
profitability." Then, in August 2019, Baozun revealed it was
"restructuring" its relationship with an unnamed "electronics"
brand partner, later revealed as Huawei, in an effort to
"[optimize] [its] brand portfolio toward high quality GMV," which
it expected would grow by "40% to 45% year-over-year." What Baozun
failed to disclose, however, was that this restructuring was
actually a result of Huawei moving its online merchandizing
in-house, and by November 2019, Baozun had stopped servicing
Huawei. Consequently, on November 21, 2019, Baozun released 3Q19
results and 2019 and 2020 financial prospects that fell short of
expectations. On this news, the price of Baozun ADRs declined by
$7.60, or 17.5% to close at $35.90.
Baozun, Inc. (BZUN) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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