INVESTOR ALERT: Class Action Lawsuit Against of Jumei International Holding Limited Announced by Glancy Binkow & Goldberg LLP
December 17 2014 - 8:23PM
Business Wire
Glancy Binkow & Goldberg LLP, representing investors of
Jumei International Holding Limited (“Jumei” or the “Company”)
(NYSE:JMEI), has filed a class action lawsuit in the United States
District Court for the Southern District of New York on behalf of a
class (the “Class”) comprising purchasers of Jumei securities: (1)
pursuant and/or traceable to the Registration Statement and
Prospectus issued in connection with the Company’s initial public
offering on or about May 15, 2014; and/or on the open market
between May 15, 2014 and November 19, 2014, inclusive (the “Class
Period”).
Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150,
or at shareholders@glancylaw.com to discuss this matter. If you
inquire by email please include your mailing address, telephone
number and number of shares purchased.
Jumei operates as an online retailer of beauty products in the
People’s Republic of China. The Complaint alleges that defendants
made false and/or misleading statements and/or failed to disclose
to investors that: (1) Jumei’s pre-IPO sales growth was partially
driven by third-party vendors in its Marketplace services who were
able to sell counterfeit products at a discount; (2) the Company
was unable to sufficiently detect counterfeit products under the
new government regulations for overseeing its online suppliers and
penalizing online counterfeit product sales; (3) as a result, the
Company would be unable to maintain its Marketplace services
business segment without significant risk of penalties; (4) as a
result, the Company’s revenues and customer acquisitions would slow
dramatically and fall far short of expectations the Company had set
for investors; and (5), as a result of the foregoing, defendants’
positive statements about the Company’s business, operations and
prospects were materially false and misleading and/or lacked a
reasonable basis at all relevant times.
On November 19, 2014, the Company reported its unaudited
financial results for third quarter 2014. According to the Company,
for the quarter ended September 30, 2014, Jumei’s total gross
merchandise value (GMV) grew by a disappointing 31.4% from the
prior year, and gross profit as a percentage of total net GMV
decreased to 22.0%, down from 25.9% in the same period of 2013,
“primarily due to an increase in promotional activities, which led
to relatively higher pricing discounts, as well as the higher
value-added tax paid as a result of a shift from beauty product
marketplace sales to merchandise sales.” On this news, shares of
Jumei declined $2.91 per share, or 13%, to close on November 20,
2014, at $19.32 per share, on unusually heavy volume.
If you are a member of the Class described above, you may move
the Court no later February 10, 2015, to serve as lead plaintiff,
if you meet certain legal requirements. To be a member of the Class
you need not take any action at this time; you may retain counsel
of your choice or take no action and remain an absent member of the
Class. If you wish to learn more about this action, or if you have
any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Lesley
Portnoy, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century
Park East, Suite 2100, Los Angeles, California 90067, at
310-201-9150, by e-mail to shareholders@glancylaw.com, or visit our
website at http://www.glancylaw.com. If you inquire by email,
please include your mailing address, telephone number and number of
shares purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Glancy Binkow & Goldberg LLP, Los AngelesLesley Portnoy,
310-201-9150 or 888-773-9224shareholders@glancylaw.comwww.glancylaw.com
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