BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Ruhnn Holding Limited (“Ruhnn” or the “Company”) (NASDAQ: RUHN) American Depositary Shares (“ADSs”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Ruhnn’s April 2019 initial public offering (the “IPO” or the “Offering”). Ruhnn investors have until December 6, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Ruhnn investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On or about April 3, 2019, Ruhnn completed its IPO in which it sold over 10 million ADSs for $12.50 per share.
On June 14, 2019, the Company reported its fourth quarter and fiscal year 2019 financial results, reporting that it only had 56 stores in operation, indicating that nearly 40% of the stores reported in the Registration Statement had been closed. The Company also disclosed that product sales had fallen sequentially 46%.
Since the IPO, Ruhnn’s shares have traded as low as $7.07 per share, or 43% below the IPO price.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that at the time of the IPO, the number of Ruhnn’s online stores had declined by nearly 40%; (2) that at the time of the IPO, the number of Ruhnn’s full-service Key Opinion Leaders had declined by nearly 44%; (3) that as a result, the Company’s net revenues derived from its full-service segment had declined by 46% on a sequential basis; and (4) that as a result, defendants’ statements about Ruhnn’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Ruhnn ADSs pursuant and/or traceable to the Registration Statement, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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