Shareholder Alert: Robbins LLP Reminds Investors Baozun, Inc. (BZUN) Sued for Misleading Shareholders
December 30 2019 - 06:03PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors 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, by the end of 2018, Baozun reported
having 185 brand partners for its services and in March 2019, the
Company touted that it "continue[s] to see the number of new brand
partners accelerating" and "expect[s]…total revenues to increase to
over RMB7.2 billion." In August 2019, Baozun revealed that its
total revenue had grown at its fastest pace ever, attributing the
growth to its "stellar tools" and "the unique value proposition
[it] offer[s]…brand partners." In reality, most of Baozun's revenue
growth was due to its heavy reliance upon a single brand partner,
later revealed as Huawei. Then, in August 2019, Huawei began moving
its online merchandizing in-house, forcing Baozun to announce it
was restructuring their relationship, which Baozun falsely
explained as an effort to "[optimize] [its] brand portfolio toward
high quality GMV." Despite efforts to conceal its reliance on
Huawei, Baozun eventually lost Huawei completely as a partner, and
as a result, 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.
If you purchased Baozun, Inc. (BZUN) securities between March
6, 2019 and November 20, 2019, you have until February 10, 2020, to
ask the court to be appointed lead plaintiff for the class.
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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