SAN DIEGO & HANGZHOU, China--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds investors that a purchaser of Ruhnn Holding Limited (NASDAQ: RUHN) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its April 2019 initial public offering ("IPO"). Ruhnn operates key opinion leader (KOL) cultivation and incubation platforms in the People's Republic of China.
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Ruhnn Holding Limited (RUHN) Accused of Misleading Investors in IPO
According to the complaint, Ruhnn completed its IPO on April 3, 2019 offering 10 million Ruhnn ADSs at $12.50 per share for net proceeds of $125 million. In its Registration Statement, Ruhnn claimed it was operating 91 online stores and touted the Company's dramatic growth in net revenues derived from its full-service model. However, these representations were materially false and failed to disclose that in actuality the number of Ruhnn's full-service online stores had plummeted by 40%, resulting in a 46% decline in net revenues in the Company's largest and most important operating segment. Then, on June 14, 2019, Ruhnn disclosed these dismal financial results for the quarter prior to holding its IPO, revealing the Company's failure to reach profitability due to its steep decline in its online stores. Since this news, the stock currently trades at around $6 per share, a 52% decline from Ruhnn's IPO price.
Ruhnn Holding Limited (RUHN) Shareholders Have Legal Options
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