SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of purchasers of Yunji Inc. (NASDAQ:YJ) American Depositary Shares pursuant to Yunji’s May 3, 2019 initial public offering (“IPO”). The case is captioned Chen v. Yunji Inc., No. 1:19-cv-06403, and is assigned to Judge LaShann Hall. The Yunji securities class action lawsuit charges Yunji, certain of its officers and directors, and the underwriters of the May 3, 2019 IPO with violations of the Securities Act of 1933.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Yunji securities pursuant to the IPO to seek appointment as lead plaintiff in the Yunji securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Yunji securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Yunji securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Yunji securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Yunji securities class action lawsuit or have questions concerning your rights regarding the Yunji securities class action lawsuit, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Yunji securities class action lawsuit must be filed with the court no later than January 11, 2020.
Yunji operates a social e-commerce platform in China pursuant to a membership-based business model. The complaint alleges that the Registration Statement for the IPO was materially false and misleading and failed to disclose to investors that: (1) the Company was shifting certain of its sales to its marketplace platform; (2) Yunji’s supply chain restructuring was likely to disrupt its relationships with suppliers; (3) the supply chain restructuring was likely to have an adverse impact on the Company’s financial results; and (4) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 22, 2019, the Company disclosed a supply chain restructuring that shifted part of its merchandise sales to its marketplace platform, resulting in a year-over-year decrease in total revenues for the second quarter of 2019. On this news, the Company’s share price declined nearly 11%, to close at $9.39 per share on August 22, 2019. Yunji’s share price continued to decline by more than 35% over the next three trading sessions to close at $6.05 per share on August 27, 2019, on unusually heavy trading volume. By the commencement of the Yunji securities class action lawsuit, the Company’s stock was trading as low as $4.40 per share, a 60% decline from the $11 per share IPO price.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.