SAN DIEGO & SHANGHAI–(BUSINESS WIRE)–$BZUN #ClassAction–Shareholder rights law firm Robbins LLP reminds investors that a purchaser of Baozun, Inc. (NASDAQ: BZUN) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between March 6, 2019 and November 20, 2019. Baozun provides brand e-commerce service to brand partners in the People’s Republic of China.
If you suffered a loss as a result of Baozun’s misconduct, click here.
Baozun, Inc. (BZUN) Accused of Misleading Shareholders
According to the complaint, by the end of 2018, Baozun reported having 185 brand partners for its services and in March 2019, the Company touted that it “continue[s] to see the number of new brand partners accelerating” and “expect[s]…total revenues to increase to over RMB7.2 billion.” In August 2019, Baozun revealed that its total revenue had grown at its fastest pace ever, attributing the growth to its “stellar tools” and “the unique value proposition [it] offer[s]…brand partners.” In reality, most of Baozun’s revenue growth was due to its heavy reliance upon a single brand partner, later revealed as Huawei. Then, in August 2019, Huawei began moving its online merchandizing in-house, forcing Baozun to announce it was restructuring their relationship, which Baozun falsely explained as an effort to “[optimize] [its] brand portfolio toward high quality GMV.” Despite efforts to conceal its reliance on Huawei, Baozun eventually lost Huawei completely as a partner, and as a result, on November 21, 2019, Baozun released 3Q19 results and 2019 and 2020 financial prospects that fell short of expectations. On this news, the price of Baozun ADRs declined by $7.60, or 17.5% to close at $35.90.
If you purchased Baozun, Inc. (BZUN) securities between March 6, 2019 and November 20, 2019, you have until February 10, 2020, to ask the court to be appointed lead plaintiff for the class.
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