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Vipshop Holdings Ltd (ADR) (NYSE: VIPS) Investor Securities Class Action Lawsuit 05/19/2015

  • If you purchased American Depositary Receipts (ADRs) of Vipshop Holdings Ltd (NYSE: VIPS), you might have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Case Dismissed
Company
Vipshop Holdings Ltd
Security
NYSE: VIPS

Case Name
Vipshop Shareholder Class Action Lawsuit 05/19/2015
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Southern District of New York

Class Period Begin
Class Period End
Deadline To File for Lead
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Summary

November 24, 2015 - The lead plaintiff filed a notice of voluntary dismissal without prejudice and the court ordered the case closed.
September 15, 2015 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

July 20, 2015 - Lead plaintiff motions were filed.

May 19, 2015 - An investor in American Depositary Receipts (ADRs) of Vipshop Holdings Ltd (NYSE: VIPS) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Vipshop Holdings Ltd in connection with certain allegedly false and misleading statements made between February 17, 2015 and May 11, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of American Depositary Receipts (ADRs) of Vipshop Holdings Ltd (NYSE: VIPS) common shares between February 17, 2015 and May 11, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Vipshop Holdings Ltd manipulated and overstated sales, receivables, profit, cash flows, and asset accounts including inventory and investments, that Vipshop Holdings Ltd’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, that Vipshop Holdings Ltd’s internal controls over financial reporting were ineffective, and that as a result of the foregoing, Vipshop Holdings Ltd's public statements were materially false and misleading at all relevant times.

Vipshop Holdings Ltd reported that its annual Total Revenue rose from $227.14 million in 2011 to over $3.77 billion in 2014 and that its Net Loss of $107.27 million in 2011 turned into a Net Income of $137.26 million.

Shares of Vipshop Holdings Ltd (ADR) (NYSE: VIPS) grew to as high as $30.72 per share on April 27, 2015.

Then on May 12, 2015, a report was published alleging that forensic models suggest Vipshop Holdings Ltd manipulated sales, receivables, profit and other asset accounts; and that Vipshop Holdings Ltd’s financial statements have been contradicted by management's own disclosures in several instances.

On May 13, 2015, Vipshop Holdings Ltd responded to the allegations and said that the allegations are unfounded and contain numerous errors, unsupported speculation, and a general misunderstanding of the Company's business model. On May 15, 2015, Vipshop Holdings Ltd responded to allegations made by a short seller on May 13, 2015.

Shares of Vipshop Holdings Ltd (ADR) (NYSE: VIPS) declined on May 14, 2015, at as low as $24.55 per share.