Milberg LLP announces that class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Vipshop Holdings Limited, (“Vipshop” or the “Company) (NYSE: VIPS) securities during the period of February 17, 2015 to May 11, 2015, (“the Class Period”).
The complaint alleges that throughout the Class Period, Vipshop and certain of its officers violated the federal securities laws by disseminating false and misleading statements to the investing public.
Specifically, the Complaint alleges that during the Class Period, 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.
In reaction to this news, Vipshop’s stock price dropped over 5% to close at $25.78 on May 12, 2015.
If you purchased Vipshop shares between February 17, 2015 and May 11, 2015, you may, no later than July 20, 2015, request that the Court appoint you lead plaintiff. A lead plaintiff is a class member that directs the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
If you would like to learn more about this potential matter, please fill out the form on the right or contact the following attorney:
Andrei Rado, Esq.
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Milberg LLP has been representing consumers and investors for more than four decades and serves as lead counsel in federal and state courts throughout the United States.
Prior Results Do Not Guarantee A Similar Outcome.