INVESTOR ALERT: Class Action Lawsuit Against Jumei International Holding Limited Announced by Law Offices of Howard G. Smith
January 16 2015 - 10:32AM
Business Wire
Law Offices of Howard G. Smith announces that a class action
lawsuit has been filed in the United States District Court for the
Southern District of New York on behalf of purchasers of the
securities of Jumei International Holding Limited (“Jumei” or the
“Company”) (NYSE:JMEI) pursuant and/or traceable to the
Registration Statement and Prospectus issued in connection with the
Company’s initial public offering on or about May 16, 2014, and/or
purchasers on the open market between May 16, 2014 and November 20,
2014, inclusive (the “Class Period”). 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 counterfeit product sales, and would be unable to
maintain its Marketplace services business segment without
significant risk of penalties; (3) the Company’s revenues and
customer acquisitions would slow dramatically and fall far short of
expectations the Company had set for investors; and (4), as a
result of the foregoing, defendants’ positive statements about the
Company’s business, operations and prospects were materially false
and misleading 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%, 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 have until
February 10, 2015, to move the Court 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 wish to learn more about this action, please contact
Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070
Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone
at 215-638-4847, Toll-Free at 888-638-4847, or by email to
howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847 or
888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
Jumei (NYSE:JMEI)
Historical Stock Chart
From May 2024 to Jun 2024
Jumei (NYSE:JMEI)
Historical Stock Chart
From Jun 2023 to Jun 2024