New York, New York--(Newsfile Corp. - January 9, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Yunji Inc. (NASDAQ: YJ) ("Yunji" or the "Company") of the January 13, 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 Yunji stock or options pursuant and/or traceable to the Company's May 3, 2019 initial public offering ("IPO" or the "Offering") and would like to discuss your legal rights, click here: www.faruqilaw.com/YJ. 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.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Yunji securities pursuant and/or traceable to the Company's May 3, 2019 initial public offering ("IPO" or the "Offering"). The case, Chen v. Yunji Inc. et al, No. 19-cv-06403 was filed on November 12, 2019, and has been assigned to Judge LaShann DeArcy Hall.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by filing an IPO Registration Statement that was false and misleading and omitted to state material adverse facts. Specifically, Defendants failed to disclose to investors: (1) that the Company was shifting certain of its sales to its marketplace platform; (2) that this supply chain restructuring was likely to disrupt Yunji's relationships with suppliers; (3) that this supply chain restructuring was likely to have an adverse impact on the Company's financial results; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On August 22, 2019, the Company disclosed a supply chain restructuring that shifted part of its merchandise sales to its marketplace platform, resulting in a year-over-year decrease in total revenues for second quarter 2019.
On this news, the Company's stock price fell from $10.60 per share on August 21, 2019 to a closing price of $9.39 per share on August 22, 2019- a $1.21 or 11.42% drop.
The share price continued to decline by $3.34, or over 35%, over the next three consecutive trading sessions to close at $6.05 per share on August 27, 2019.
By the commencement of this action, Yunji's shares were trading as low as $4.40 per share, a nearly 60% decline from the $11 per share IPO price.
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 Yunji's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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