Jumei.Com Initiated A Class Action Lawsuit

Last week, jumei.com was investigated and lawsuits by some law firms in the United States. Today, another US law firm, Milberg LLP, announced that it was conducting an investigation of jumei.com. It also represented investors who bought jumei.com's US Depositary Receipts (ADS) from May 16, 2014 to November 19, 2014 and initiated a class action lawsuit against jumei.com in the Eastern District Court of New York.

Milberg LLP claimed in the class action lawsuit that during the above period, jumei.com and some company officials violated the relevant federal securities act and distributed false and misleading statements and information to public investors.

Milberg LLP specifically charged in the prosecution that jumei.com and some executives distributed the following false and misleading statements, or failed to disclose the following information: 1. Jumei.com failed to disclose the mode adjustment of revenue in the process of selling from the third party platform to the direct selling business; 2, the change of this mode brought huge risks to jumei.com's previous successful financial performance; 3, jumei.com did not expand the third party platform marketing services as promised. Therefore, the accuser believes that when these unfavorable facts appear, the price of jumei.com's securities has declined, which has further damaged the interests of investors.

Data show that in December 11, 2014, the price of jumei.com American Depositary Receipts dropped to a low level of $12.87, but in August 18, 2014, it rose to a high level of $39.45.

To this end, Milberg LLP announced an investigation into jumei.com and launched a class action lawsuit. At the same time, the law firm also called on investors from May 16, 2014 to November 19th to apply to the court as the main plaintiff before February 10, 2015, so that they can become eligible to initiate direct litigation in class action.

Last week, two other law firms, RobbinsGeller Rudman & Dowd LLP (hereinafter referred to as "Robbins law"), and The Rosen LawFirm (hereinafter referred to as "Rosen law") also filed a class action lawsuit against jumei.com for similar reasons. Among them, Robbins law points out that list In the application document, jumei.com did not disclose to investors its online store business relying on "suspicious" third party commodity suppliers.

and Rosen Law Office There are many jumei.com. False disclosure Misleading statements, and undisclosed information. Among them, jumei.com failed to accurately disclose the change of its business mode, that is, the spanformation from the original merchandise sales mode to the online store mode. The change of this business mode will pose a great risk to jumei.com's financial performance. Besides, jumei.com has not expanded the online store business according to the information disclosed.

In the regular trading of US stock market on Monday, jumei.com's shares fell $0.72, closing at $12.78, or 5.33%. In the past 52 weeks, jumei.com's highest stock price was $39.45, and its lowest price was $12.58.