INVESTOR ALERT: Investors of Jumei International Holding Limited With Losses of $100,000 or More Are Encouraged to Contact La...
February 03 2015 - 10:32AM
Business Wire
Law Offices of Howard G. Smith reminds investors that purchasers
of the securities of Jumei International Holding Limited (“Jumei”
or the “Company”) (NYSE:JMEI) have until February 10, 2015, to file
a motion to be appointed as lead plaintiff in the shareholder
lawsuit filed in the United States District Court for the Southern
District of New York. Investors who have losses of $100,000 or more
are encouraged to contact the firm for more information.
The class action lawsuit asserts claims on behalf of purchasers
of Jumei securities 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
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 may move
the Court no later than 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 suffered losses of $100,000 or
more and 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, Esquire(215)
638-4847(888)
638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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