A lawsuit was filed on behalf of investors in ZTO Express (Cayman) Inc (ADR) (NYSE:ZTO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/12/2017 -- An investor, who purchased NYSE:ZTO shares, filed a lawsuit over alleged violations of Federal Securities Laws by ZTO Express (Cayman) Inc in connection with the Company's October 27, 2016 initial public offering ("IPO").
Investors who purchased shares of ZTO Express (Cayman) Inc (ADR) (NYSE:ZTO) should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
According to the complaint the plaintiff alleges on behalf of investor of ZTO Express (Cayman) Inc (ADR) (NYSE:ZTO) common shares, who purchased their NYSE:ZTO shares in connection with the Company's October 27, 2016 IPO, , that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the IPO Registration Statement and Prospectus contained allegedly materially false and misleading information, and failed to disclose that that ZTO Express (Cayman) Inc was improperly inflating its stated profit margins by keeping certain low-margin segments of its business out of its financial statements. The plaintiff alleges that ZTO Express (Cayman) Inc failed to disclose that it used a system of "network partners" to handle lower-margin pickup and delivery services, while maintaining ownership of core hub operations. By keeping the "network partners" businesses off its own books, the Company allegedly was able to exaggerate its profit margins to investors.
Those who purchased shares of ZTO Express (Cayman) Inc (ADR) (NYSE:ZTO) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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