PHILADELPHIA, Dec. 18, 2014 /PRNewswire/ -- Cohen, Placitella
& Roth, P.C. is investigating potential claims on behalf of
investors who purchased Jumei International Holding Limited
("Jumei" or "Company") (NYSE: JMEI) during the period from
May 16, 2014 through November 19, 2014 ("Class Period"). The
investigation concerns whether Jumei and certain of its officers,
directors and underwriters of its May 10,
2014 initial public offering ("IPO") violated federal
securities laws.
Jumei is China's largest
online, discount beauty products retailer. At the time of its
IPO, the Company both sold products directly to consumers and sold
products from third-party merchants, charging "marketplace
services" fees on those sales. In the year prior to the IPO,
the Company achieved 30% of its gross merchandise value from
marketplace services.
On May 16, 2014, Jumei commenced
its IPO at $22 per share.
Falsely touting an expansion of the Company's marketplace services,
the IPO offering documents omitted that the Company already
intended to cease offering those services in favor of direct
merchandise sales. Jumei also failed to disclose that
third-party merchants may have used its platform to sell
counterfeit goods, but that just prior to the IPO, China had enacted a new consumer protection
law to hold liable marketplace sellers such as Jumei for such
sales. Jumei's undisclosed strategy to transition away from
offering profitable marketplace services posed material risks to
the Company's financial prospects.
On November 19, 2014, Jumei
disclosed disappointing quarterly earnings on slower than
anticipated growth. The Company's gross profit margin had
eroded and it was experiencing its slowest growth on record.
Shortly thereafter, a Barron's article, titled "Why
Jumei's Business Model is Broken. Selling Authentic Makeup is
costly," disclosed that the Company's shift away from third-party
merchant sales had severely limited Jumei's offerings of top
brands. On this news, Jumei's stock fell precipitously by 13%
to $19.32, 12% below the IPO price
and well off a post IPO high of $39.45.
If you have any information about this investigation or, if you
wish to discuss your rights as a shareholder in Jumei, please
contact Eduardo A. Texidor, Jr., no
later than January 27, 2015, at
etexidor@cprlaw.com or, toll free, at 1-888-375-7600. In
particular, if you purchased from underwriters Goldman Sachs
(Asia) L.L.C., Credit Suisse
Securities (USA) LLC, J.P. Morgan
Securities LLC, China Renaissance Securities (Hong Kong) Limited, Piper Jaffray & Co. and Oppenheimer &Co.
Inc., and suffered a loss, you may have certain rights in addition
to others who may have purchased shares in the open market.
To perfect those rights, please contact Eduardo A. Texidor, Jr. For those
investors inquiring via email, please be sure to include "Jumei" in
the subject line, the number of shares purchased, and your mailing
address and telephone number.
Since 1973, Cohen, Placitella & Roth, P.C. has been
recognized as one of the premier trial law firms in the country.
The firm has extensive experience in prosecuting securities
litigation involving violations of the federal securities laws,
state law derivative actions, and mergers and acquisitions cases,
representing institutional investors such as public pension plans
and union pension funds, as well as individual shareholders
suffering substantial investment losses due to corporate
misconduct. LexisNexis Martindale-Hubbell® annually reports
Cohen, Placitella & Roth's peer rating-the highest AV® - "a
testament to professional excellence." Since the inauguration
of its "Best Law Firms" edition in 2010, U.S. News and World Report
has annually listed Cohen, Placitella & Roth's as one of the
top-tier class action law firms in the country.
Contact:
Eduardo A. Texidor, Jr.
Cohen, Placitella & Roth, P.C.
Toll free: 1-888-375-7600
etexidor@cprlaw.com
www.cprlaw.com
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