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NEW YORK, June 05, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Vipshop Holdings Limited (“Vipshop” or the “Company”) (NYSE:VIPS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-3870, is on behalf of a class consisting of all persons or entities who purchased Vipshop securities between February 17, 2015 and May 11, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Vipshop securities during the Class Period, you have until July 20, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People’s Republic of China. It offers a range of branded products, including women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men shoes for casual and formal occasions; and accessories consisting of belts, jewelry, watches, and glasses for women and men.
The Complaint alleges throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) Vipshop manipulated and overstated sales, receivables, profit, cash flows, and asset accounts including inventory and investments; (2) Vipshop’s financial statements contain GAAP violations by reporting revenue on a ‘gross’ basis, despite the fact that the vast majority of the company’s sales are under a consignment arrangement; (3) Vipshop’s internal controls over financial reporting were ineffective; and (4) as a result of the foregoing, Vipshop’s public statements were materially false and misleading at all relevant times.
On May 12, 2015, Mithra Forensic Research published a report on Vipshop (the “Mithra Report”) asserting, among other things, that: (1) forensic models suggest Vipshop manipulated sales, receivables, profit and other asset accounts; and (2) Vipshop’s financial statements have been contradicted by management's own disclosures in several instances.
As a result of this news, shares of Vipshop fell $1.54 per share, or over 5%, to close at $25.78 per share May 12, 2015.
On May 14, 2015, during the Company’s earnings conference call, it was revealed that Vipshop was the subject of another shortseller report issued by J Capital Research (the “J Capital Report”). According to an article published later that day by TheStreet.com, the J Capital Report presented research “[c]iting discrepancies in the company's accounting” and stating that the Company’s “financial filings in China are vastly different than the filings with the Securities and Exchange Commission, leading to concerns that the company's results are not accurate.”
As a result of this news, shares of Vipshop fell $1.45 per share, or over 5.4%, to close at $25.21 per share May 14, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
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