Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of LightInTheBox
Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of LightInTheBox Holding Co., Ltd. Investors
NEW YORK--(BUSINESS WIRE)-- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of all persons who purchased American Depositary Shares ("ADS") of LightInTheBox Holding Co., Ltd. ("LHC" or the "Company") [NYSE: LITB] between its initial public offering on June 6, 2013, and August 19, 2013, inclusive (the "Class Period"), against the Company and certain of the Company's officers ("Defendants"), alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5].
The litigation is styled Pearlman v. LightInTheBox Holding Co., Ltd., C.A. No. 13-cv-6929. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
As alleged in the Complaint, during the Class Period, Defendants materially overstated LHC's prospects and growth potential and materially misled the investing public by issuing false and misleading statements and omitting material facts necessary to make Defendants' statements not false and misleading. More specifically, the registration statement and the associated prospectus used to conduct the IPO contained material misstatements regarding Company growth and revenue projections. Further, during the Company's initial public offering ("IPO") roadshow, senior management issued growth targets which were made solely for the purpose of igniting a market for the Company's IPO, but which later turned out to be false.
The truth about the Company's actual financial condition came out on August 19, 2013, following the Company's announcement of its second quarter financial results. The Company failed to meet market expectations of $75.8 million in revenue and earnings of $0.06 per share, as LHC could only manage $72.2 million in revenue and $0.05 earning per share. The Company's profitability suffered because its revenue growth of 52.6% could not offset the company's 57% increase in operational costs. The primary cause for the Company's poor results was that the sales of wedding and prom dress were much weaker during the second quarter of 2013 than Defendants had represented in the Registration Statement and during the road show.
On this news the Company's ADS, which traded as high as $23.38 per share intraday during the Class Period, collapsed approximately 40% from its close on August 19, 2013 to close at $11.58 per share on August 20, 2013. In ignorance of the false and misleading nature of the statements described in the Complaint, and the deceptive and manipulative devices and contrivances employed by said Defendants, Plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of the Company's ADS. Had Plaintiff and the other members of the Class known the truth, they would not have purchased said ADS, or would not have purchased them at the inflated prices that were paid.
If you purchased the Company's ADS during the Class Period, you may request that the Court appoint you as lead plaintiff by October 28, 2013. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq.), via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com. All e-mail correspondence should make reference to "LightInTheBox".
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory M. Nespole, Esq., 800-575-0735
KEYWORDS: United States North America New York
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