Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Jumei International Holding Limited
December 12 2014 - 1:55PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/jumei/) today announced that a class
action has been commenced in the United States District Court for
the Southern District of New York on behalf of purchasers of Jumei
International Holding Limited (“Jumei”) (NYSE:JMEI) American
Depositary Shares (“ADSs”) between May 16, 2014, the date of
Jumei’s initial public offering (“IPO”), and November 19, 2014.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/jumei/. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member.
The complaint charges Jumei, certain of its officers and
directors and the underwriters of its IPO with violations of the
Securities Act of 1933. Jumei operates as an online retailer of
beauty products in the People’s Republic of China.
On or about January 30, 2014, Jumei filed Registration
Statements with the SEC which, following several amendments in
response to comments by the SEC, would later be utilized for the
IPO. On or about May 16, 2014, Jumei and the underwriters priced
the IPO. The IPO was successful, with Jumei issuing and selling
more than 12.7 million ADSs to the public at $22 each, raising
approximately $280 million in gross proceeds.
The complaint alleges that under the rules and regulations
governing the preparation of the Registration Statement, Jumei was
required to disclose at the time of the IPO that it had been
relying upon dubious suppliers for its third-party “Marketplace”
offerings, which it needed to cease doing business with, and that
ceasing to do business with those suppliers would raise its product
costs and would, at least temporarily, diminish its sales by
decreasing the variety of products the Company had to offer. The
Registration Statement, however, contained no such disclosures.
Following the Company’s issuance of a July 2014 “Business Update”
outlining a series of steps the Company would need to take to
ensure the legitimacy of the product being sold on its website
going forward and the Company’s reporting of its actual third
quarter 2014 financial results (for the period ended September 30,
2014), which were negatively impacted by the business model changes
described in the Business Update, and other related disclosures,
the price of Jumei ADSs fell. Currently Jumei ADSs trade at below
$14 each, a decline of approximately 38% from the IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers
of Jumei ADSs between May 16, 2014, the date of Jumei’s IPO, and
November 19, 2014 (the “Class”). The plaintiff is represented by
Robbins Geller, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial
fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained many of
the largest securities class action recoveries in history,
including the largest securities class action judgment. Please
visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLPSamuel H. Rudman,
800-449-4900David A. Rosenfelddjr@rgrdlaw.com
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