NEW YORK, July 2, 2015 /PRNewswire/ -- Bernstein
Liebhard LLP today announced that a class action has been commenced
in the United States District Court for the Southern District of
New York on behalf of shareholders
(the "Class") who purchased Vipshop Holdings Limited ("Vipshop" or
the "Company") (NYSE: VIPS) securities between February 17, 2015 and May
18, 2015 (the "Class Period"). The complaint charges
Vipshop and certain of its officers and directors with violations
of the Securities Exchange Act of 1934.
Vipshop Holdings Limited, through its subsidiaries, operates as
an online discount retailer for various brands in the People's
Republic of China.
The complaint alleges throughout the Class Period, defendants
made materially false and misleading statements regarding the
Company's business, operational and compliance policies.
Specifically, the complaint alleges defendants made false and/or
misleading statements and/or failed to disclose that: (1) Vipshop
manipulated and overstated sales, receivables, profit, cash flows,
and asset accounts including inventory and investments; (2)
Vipshop's financial statements contain GAAP violations by reporting
revenue on a 'gross' basis, despite the fact that the vast majority
of the company's sales are under a consignment arrangement; (3)
Vipshop's internal controls over financial reporting were
ineffective; and (4) as a result of the foregoing, Vipshop's public
statements were materially false and misleading at all relevant
times.
On May 12, 2015, a report
published by Mithra Forensic Research asserted, among other things,
that forensic models suggest that Vipshop manipulated sales,
receivables, profit, and other asset accounts, and that Vipshop's
financial statements have been contradicted by statements by
Vipshop's management. On this news, shares of Vipshop fell
$1.54 per share, or 5.6%, to close at
$25.78.
On May 14, 2015, a J Capital
Research report stated that the Company's "financial filings in
China are vastly different than
its filings with the Securities and Exchange Commission." On
this news, shares of Vipshop fell $1.45 per share, or 5.4%, to close at
$25.21.
On May 29, 2015, Mithra Forensic
Research published another report, asserting, among other things,
that "we have found additional information which suggests that VIPS
continues to misrepresent [affiliate] Lefeng's revenues," and that
"[s]ignificant and growing losses at Lefeng and Ovation are likely
driven by VIPS pushing Operating Expenses onto them." On this
news, shares of Vipshop declined more than 1.6%, to close at
$24.97.
Plaintiffs seek to recover damages on behalf of all Class
members who invested in Vipshop securities during the Class
Period. If you invested in Vipshop as described above, and
either lost money on the transaction or still hold the security,
you may wish to join in this action to serve as lead
plaintiff. In order to do so, you must meet certain
requirements set forth in the applicable law and file appropriate
papers no later than July 20,
2015.
A "lead plaintiff" is a representative party that acts on behalf
of other class members in directing the litigation. In order
to be appointed lead plaintiff, the court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members
may together serve as lead plaintiff. Your ability to share
in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. You may retain Bernstein
Liebhard LLP, or other counsel of your choice, to serve as your
counsel in this action.
If you are interested in discussing your rights as a Vipshop
shareholder and/or have information relating to the matter, please
contact Joseph R. Seidman, Jr. at
(877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities,
consumer and shareholder rights cases and recovered over
$3 billion for its clients. The
National Law Journal has recognized Bernstein Liebhard for
twelve consecutive years as one of the top plaintiffs' firms in the
country.
You can obtain a copy of the complaint from the clerk of the
court for the United States District Court for the Southern
District of New York.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2015 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 779-1414
seidman@bernlieb.com
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