Robbins Arroyo LLP: Jumei International Holding Limited (JMEI) Misled Shareholders According to a Recently Filed Class Action...
December 17 2014 - 2:48PM
Shareholder rights law firm Robbins Arroyo LLP announces that an
investor of Jumei International Holding Limited (NYSE:JMEI) has
filed a federal securities fraud class action complaint in the U.S.
District Court for the Eastern District of New York. The complaint
alleges that the company and certain of its officers and directors
violated the Securities Exchange Act of 1934 between May 16, 2014
and November 20, 2014. Jumei is an online retail company based in
China that sells beauty products and cosmetics.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/jumei-international
Jumei Is Accused of Misleading Investors
According to the complaint, Jumei American Depository Shares
("ADS") fell $2.91 per share, or 13%, to close at $19.32 per share
on November 20, 2014, following the company's November 19, 2014
third quarter earnings announcement. Specifically, Jumei reported
that gross profits as a percentage of net revenues declined to 38%
and gross profit as a percentage of total net gross merchandise
value declined to 22%. According to Jumei, these decreases were
primarily due to an increase in promotional activities, which led
to relatively higher pricing discounts, as well as an increase in
value added tax as a result of a shift from beauty product
marketplace sales to merchandise sales.
The complaint also alleges that Jumei failed to disclose that:
(i) it had made the decision to change its revenue model by
transitioning from marketplace services to merchandise sales; (ii)
the change in revenue structure posed a risk to the company's
financial performance; (iii) defendants knew they were going to
undertake the transition away from the marketplace services at the
time Jumei filed its registration documents with the Securities and
Exchange Commission in connection with its Initial Public
Offerings; and (iv) that defendants were aware that there were
additional costs and expenses that would be incurred because of
this transition.
Jumei Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo 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.
Attorney Advertising. Past results do not guarantee a similar
outcome.
CONTACT: Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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