SAN DIEGO & SAO PAULO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Netshoes (Cayman) Limited (NYSE: NETS) common stock issued in connection with the company's April 12, 2017 initial public offering ("IPO") have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933. Netshoes, through its subsidiaries, operates as a sports and lifestyle online retailer in Brazil and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/netshoes-cayman-ltd/
Netshoes Accused of Overinflating Its Competitive Edge
According to the complaint, Netshoes, which raised over $148.5 million in proceeds in its IPO, represented in its registration statement that the company had significant market share in a large addressable market and highlighted customer loyalty. Netshoes also touted that it did not have a relevant direct competitor in the eCommerce sports category in the Latin American region. Contrary to these representations, Netshoes faced intense competition in the sports, fashion, and beauty ecommerce market, which threatened its market share and profitability. Netshoes began to report dismal financial results in August 2017 and its stock price has since steadily plunged to only $2.30 per share—a decline of nearly 86% in one year.
Netshoes Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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