New York, New York--(Newsfile Corp. - February 6, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Baozun Inc. (NASDAQ: BZUN) ("Baozun" or the "Company" of the February 10, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Baozun American Depository Receipts ("ADRs") or options between March 6, 2019 and November 20, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/BZUN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Baozun ADRs between March 6, 2019 and November 20, 2019 (the "Class Period"). The case, Snyder v. Baozun Inc. et al, No. 19-cv-11290 was filed on December 10, 2019 and has been assigned to Andrew L. Carter, Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and misleading statements and/or failing to disclose adverse information regarding Baozun's business and financial results. Specifically, 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 inhouse. As a result of this information being withheld from the market, the price of Baozun ADRs was artificially inflated throughout the Class Period, 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.
Then, on November 21, 2019, Baozun 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.
On this news, Baozun's stock price fell from $43.50 per share on November 20, 2019 to a closing price of $35.90 per share on November 21, 2019-a $7.60 or 17.47% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Baozun's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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