SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of investors who purchased or otherwise acquired the securities of Cnova N.V. (“Cnova” or the “Company”) (NASDAQ: CNV) between November 19, 2014 and December 18, 2015, inclusive (the “Class Period”), including in Cnova’s initial public offering on or about November 19, 2014 (the “IPO”).
If you purchased or otherwise acquired the securities of Cnova during the Class Period and/or in Cnova’s IPO, you may move the Court for appointment as lead plaintiff by no later than March 21, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Cnova investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Cnova Securities Class Litigation
Cnova is an e-commerce company that offers and sells products online. The Company’s most significant product categories are home appliances, consumer electronics, computers, and home furnishings. The actions allege that Cnova and certain of its officers, directors, and underwriters of the Company’s IPO violated the federal securities laws. Specifically, the actions allege that throughout the Class Period, defendants failed to disclose: (1) that Cnova overstated net sales; (2) that Cnova failed to properly write-off the value of certain returned items; (3) that there was a material discrepancy in accounts receivable related to the damaged/returned items; (4) that, as such, the Company’s EBIT was overstated; (5) that the Company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company’s financial statements and defendants’ statements about Cnova’s business, operations, and prospects, were materially false and misleading at all relevant times.
On November 19, 2014, Cnova priced its IPO of 26,800,000 shares at $7.00 per share, exclusive of the underwriters’ over-allotment option to purchase 4,020,000 additional shares.
On December 18, 2015, Cnova reported that it had engaged legal advisors and external accountants to review issues related to its inventory including the handling of product returns and damaged product inventory. On this news, the price of Cnova’s common stock fell $0.53 per share, or 17.97%, to close at $2.42 on December 21, 2015, on unusually high trading volume.
On January 12, 2016, Cnova issued an update on its internal review and disclosed, among other things, that: (1) it had uncovered a potential overstatement of net sales, (2) there was a “material discrepancy” in accounts receivable related to damages/returned items, and (3) that a write-off of 10% of total inventory was necessary.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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