SAN DIEGO & ZHEJIANG PROVINCE, China--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Yunji, Inc. (NASDAQ: YJ) has filed a class action complaint against the Company for alleged violations of the Securities Act of 1933 pursuant to its May 2019 initial public offering ("IPO"). Yunji operates a social e-commerce platform in the People's Republic of China.
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Yunji, Inc. (YJ) Accused of Misleading Investors in IPO
According to the complaint, Yunji completed its IPO on May 3, 2019, offering 11,217,447 American Depository Shares ("ADSs") at $11.00 per share and raising $108.97 million in proceeds. In its Registration Statements, Yunji touted the Company's supply chain management as a factor leading to its organic growth. However, Yunji had failed to disclose that it was shifting certain sales to its marketplace platform, which was likely to disrupt its relationships with suppliers and adversely impact the Company's financial results. As a result, on August 22, 2019, Yunji finally revealed a year-over-year decrease in total revenues for second quarter 2019 due to its supply chain restructuring that shifted part of its merchandise sales to its marketplace platform. On this news, Yunji's share price fell $4.55, or nearly 46%, over the next 4 trading days to close at $6.05 per share on August 27, 2019. The stock currently trades at around $4.30, representing an almost 61% decline from its IPO price.
If you purchased Yunji, Inc. (YJ) securities in its May 2019 IPO, you have until January 13, 2020, to ask the court to be appointed lead plaintiff for the class.
Robbins 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. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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