By Business Wire, October 01, 2013, 01:02:00 PM EDT
NEW YORK--(BUSINESS WIRE)--
Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action
lawsuit has been filed in the United States District Court for the
Southern District of New York, on behalf of all persons who purchased
American Depositary Shares ("ADS") of LightInTheBox Holding Co., Ltd.
("LHC" or the "Company") [NYSE: LITB] between its initial public
offering on June 6, 2013, and August 19, 2013, inclusive (the "Class
Period"), against the Company and certain of the Company's officers
("Defendants"), alleging securities fraud pursuant to Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and
78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. §
The litigation is styled Pearlman v. LightInTheBox
Holding Co., Ltd., C.A. No. 13-cv-6929. A copy of the complaint
filed in this action is available from the Court, or can be viewed on
the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
As alleged in the Complaint, during the Class Period, Defendants
materially overstated LHC's prospects and growth potential and
materially misled the investing public by issuing false and misleading
statements and omitting material facts necessary to make Defendants'
statements not false and misleading. More specifically, the registration
statement and the associated prospectus used to conduct the IPO
contained material misstatements regarding Company growth and revenue
projections. Further, during the Company's initial public offering
("IPO") roadshow, senior management issued growth targets which were
made solely for the purpose of igniting a market for the Company's IPO,
but which later turned out to be false.
The truth about the Company's actual financial condition came out on
August 19, 2013, following the Company's announcement of its second
quarter financial results. The Company failed to meet market
expectations of $75.8 million in revenue and earnings of $0.06 per
share, as LHC could only manage $72.2 million in revenue and $0.05
earning per share. The Company's profitability suffered because its
revenue growth of 52.6% could not offset the company's 57% increase in
operational costs. The primary cause for the Company's poor results was
that the sales of wedding and prom dress were much weaker during the
second quarter of 2013 than Defendants had represented in the
Registration Statement and during the road show.
On this news the Company's ADS, which traded as high as $23.38 per share
intraday during the Class Period, collapsed approximately 40% from its
close on August 19, 2013 to close at $11.58 per share on August 20,
2013. In ignorance of the false and misleading nature of the statements
described in the Complaint, and the deceptive and manipulative devices
and contrivances employed by said Defendants, Plaintiff and the other
members of the Class relied, to their detriment, on the integrity of the
market price of the Company's ADS. Had Plaintiff and the other members
of the Class known the truth, they would not have purchased said ADS, or
would not have purchased them at the inflated prices that were paid.
If you purchased the Company's ADS during the Class Period, you may
request that the Court appoint you as lead plaintiff by October 28,
2013. A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as "lead
plaintiff." Your ability to share in any recovery is not, however,
affected by the decision whether or not to serve as a lead plaintiff.
You may retain Wolf Haldenstein, or other counsel of your choice, to
serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and federal
trial and appellate courts across the country. The firm has
approximately 70 attorneys in various practice areas; and offices in
Chicago, New York City, and San Diego. The reputation and expertise of
this firm in shareholder and other class litigation has been repeatedly
recognized by the courts, which have appointed it to major positions in
complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New
York, New York 10016, by telephone at (800) 575-0735 (Gregory M.
Nespole, Esq.), via e-mail at firstname.lastname@example.org,
or visit our website at www.whafh.com.
All e-mail correspondence should make reference to "LightInTheBox".
Source: Wolf Haldenstein Adler Freeman & Herz LLP