NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/lightinthebox/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of LightInTheBox Holding Co., Ltd. (“LightInTheBox”) (NYSE:LITB) American Depository Shares (“ADSs”) during the period between its June 6, 2013 initial public stock offering (“IPO”) and August 19, 2013, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/lightinthebox/. 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.
The complaint charges LightInTheBox and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LightInTheBox, organized under the laws of the Cayman Islands and headquartered in Beijing, China, is a global online retail company that sells directly to consumers via the Internet. The Company offers products in three core categories: apparel (including wedding dresses), small accessories and gadgets, and home and garden.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects. In particular, defendants misrepresented or failed to disclose the following adverse facts, which were known to defendants or recklessly disregarded by them: (a) LightInTheBox’s sales growth had dramatically decreased during the second quarter of 2013, the period ended June 30, 2013; (b) LightInTheBox’s costs had grown more than its sales during the second quarter of 2013; and (c) as a result of the foregoing, the Company was not on track to achieve the financial results defendants had led the market to expect during the Class Period.
On August 19, 2013, after the close of trading, the Company issued a press release announcing its actual second quarter 2013 financial results for the quarter ended June 30, 2013, less than one month after the IPO. Rather than the earnings of $.06 per share on revenues of $75.8 million the investment community had been led to expect, LightInTheBox reported revenues of just $72.2 million and profits (excluding items) of $.05 per share. In addition, revenues rose only 52.6% while operating costs rose 57%. The Company also forecast revenues of just $68-$70 million for the third quarter of 2013 (ending just a little more than a month away, on September 30, 2013), whereas analysts had been led to expect $75.8 million. On this news, the price of LightInTheBox ADSs, which had traded as high as $23.38 per share in intraday trading during the Class Period (on August 14, 2013), plummeted approximately 40% from their close on August 19, 2013, to close below $12 per share on August 20, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of LightInTheBox ADSs during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.