A lawsuit was filed on behalf of investors in Baozun Inc. (NASDAQ: BZUN) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/27/2020 -- An investor, who purchased shares of Baozun Inc. (NASDAQ: BZUN), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Baozun Inc.
Investors who purchased shares of Baozun Inc. (NASDAQ: BZUN) have certain options and for certain investors are short and strict deadlines running. Deadline: February 10, 2020. NASDAQ: BZUN investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Then on November 21, 2019, Baozun Inc announced third quarter 2019 financial results that were lower than the market had been led to expect and provided dismal fourth quarter 2019 financial guidance, blaming, in large part, the adverse "impact from terminating our service agreement with one electronics brand." Though Baozun did not disclose who that large "electronics brand" was, many in the financial media have suggested that it was Huawei.
Shares of Baozun Inc. (NASDAQ: BZUN) declined from $54.97 per share in July 2019 to as low as $32.35 per share on December 23, 2019.
The plaintiff claims that between March 6, 2019 and November 20, 2019, the defendants failed to disclose that Huawei Technologies Co., Ltd. ("Huawei"), a Chinese-based multi-national technology company, was one of the Company's largest brand partners, on a historical basis, and paid more add-on fees for the work Baozun did for it, increasing the revenues Baozun received for Huawei work compared to the Company's other brand partners. This caused Baozun to report outsized revenue growth during the first half of 2019, which would be abruptly cut off during the second half 2019, after Baozun restructured its relationship with Huawei, as Huawei took much of its online merchandizing in-house, and that as a result of this information being withheld from the market, the price of Baozun ADRs was artificially inflated between March 6, 2019 and November 20, 2019, allowing Baozun to sell at least 2.25 million ADRs in a registered public stock offering at $40 per ADR on or about April 10, 2019, raising $90 million, and close a concurrent offering of $225 million in aggregate principal amount of convertible senior notes due 2024 the same day, receiving net proceeds of approximately $269 million.
Those who purchased shares of Baozun Inc. (NASDAQ: BZUN) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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