NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/jumei/) 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 purchasers of Jumei International Holding Limited (“Jumei”) (NYSE:JMEI) American Depositary Shares (“ADSs”) between May 16, 2014, the date of Jumei’s initial public offering (“IPO”), and November 19, 2014.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/jumei/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Jumei, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933. Jumei operates as an online retailer of beauty products in the People’s Republic of China.
On or about January 30, 2014, Jumei filed Registration Statements with the SEC which, following several amendments in response to comments by the SEC, would later be utilized for the IPO. On or about May 16, 2014, Jumei and the underwriters priced the IPO. The IPO was successful, with Jumei issuing and selling more than 12.7 million ADSs to the public at $22 each, raising approximately $280 million in gross proceeds.
The complaint alleges that under the rules and regulations governing the preparation of the Registration Statement, Jumei was required to disclose at the time of the IPO that it had been relying upon dubious suppliers for its third-party “Marketplace” offerings, which it needed to cease doing business with, and that ceasing to do business with those suppliers would raise its product costs and would, at least temporarily, diminish its sales by decreasing the variety of products the Company had to offer. The Registration Statement, however, contained no such disclosures. Following the Company’s issuance of a July 2014 “Business Update” outlining a series of steps the Company would need to take to ensure the legitimacy of the product being sold on its website going forward and the Company’s reporting of its actual third quarter 2014 financial results (for the period ended September 30, 2014), which were negatively impacted by the business model changes described in the Business Update, and other related disclosures, the price of Jumei ADSs fell. Currently Jumei ADSs trade at below $14 each, a decline of approximately 38% from the IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers of Jumei ADSs between May 16, 2014, the date of Jumei’s IPO, and November 19, 2014 (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. Please visit http://www.rgrdlaw.com for more information.