SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating D-MARKET Electronic Services & Trading d/b/a Hepsiburada (Nasdaq: HEPS) to determine whether certain D-MARKET officers and directors violated the Securities Act of 1933. D-MARKET is an online e-commerce company in Turkey where it is known as the "Amazon of Turkey."
If you have questions regarding D-MARKET's alleged misconduct, click here.
D-MARKET Electronic Services & Trading (HEPS) Misstated its Business and Financial Prospects
On July 1, 2021, D-MARKET conducted its initial public offering ("IPO"), selling 62.251 million ADRs at $12 per ADR for more than $783 million in gross proceeds. However, the Registration Statement filed in support of the IPO failed to disclose that D-MARKET had suffered deeply disappointing financial results in 2021 – before the IPO – and instead represented that the Company was experiencing tremendous revenue and sales growth at the time of the IPO.
On August 26, 2021, D-MARKET announced its 2Q21 financials results, including a just 5% year-over-year growth in 2Q21, over 90% below the most recent growth highlighted in the Registration Statement. The Company also noted: "[a]s the second half of the year began, the Turkish e-commerce market has encountered several challenges," with "[t]hese includ[ing] the nationwide extension of the bank holiday period during the celebration of Eid al-Adha in July, and the lift-off of lock-down measures as of July 1st, both of which adversely impacted consumer behavior in online shopping."
The stock currently trades at just $5.50, a more than 50% decline from the price at which D-MARKET sold its ADRs to investors.
D-MARKET Electronic Services & Trading (HEPS) shareholders have legal options. If you own shares of D-MARKET Electronic Services & Trading contact us to learn more about your rights.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against D-MARKET Electronic Services & Trading settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.