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SAN FRANCISCO, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Vipshop Holdings Ltd. (NYSE: VIPS) investors with significant losses to submit your losses now.
Vipshop Holdings Ltd. (VIPS) Securities Class Action:
The lawsuit arises from Goldman Sachs’ and Morgan Stanley’s use of insider information to avoid billions of dollars in losses tied to the high-profile downfall of Archegos Capital Management by unloading Vipshop shares on “unwitting investors.”
Specifically, the complaint alleges Goldman Sachs, Morgan Stanley and other Wall Street Banks served as prime brokers for Archegos, the now defunct family office of troubled trader Bill Hwang. Unbeknownst to investors, by 2020, the brokerage banks allowed Archegos to take on billions of dollars of exposure to volatile equities, including Vipshop, through swaps contracts, dramatically elevating the risk posed by these concentrated positions.
ViacomCBS’ $3 billion stock offering on Mar. 23 served as Archegos’ “Achilles heel.” The offering caused a decline in ViacomCBS’ share price, triggering Archegos’ imminent collapse. Knowing of Archegos’ likely insolvency, Morgan Stanley and Goldman Sachs violated U.S. securities laws by unloading the troubled shares before the public knew about Archegos’ inability to satisfy its lenders’ margin calls, which allowed the banks to avoid billions of dollars in losses and pass on those losses to other investors.
“We’re focused on investors’ losses and proving Defendants acted on inside information to leave retail investors holding the bag,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Vipshop and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Vipshop, Goldman Sachs, Morgan Stanley, and/or Archegos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email VIPS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895