LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP reminds investors of Jumei International Holding Limited (“Jumei” or the “Company”) (NYSE:JMEI) that 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, 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.
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 may move the Court no later than February 10, 2015, to serve as lead plaintiff; however, you must 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
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