Hepsiburada Class Action Lawsuit - HEPS

Company Name
Stock Symbol
Motion Deadline
December 20, 2021
Southern District of New York
21 days left to seek lead plaintiff status

Case Summary

The Hepsiburada class action lawsuit charges D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi a/k/a D-MARKET Electronic Services & Trading d/b/a/ Hepsiburada (NASDAQ: HEPS), certain of its officers and directors, as well as the underwriters of Hepsiburada’s July 2021 initial public offering (“IPO”) with violations of the Securities Act of 1933.  Filed in the Southern District of New York on October 21, 2021 and captioned Golden Horn Asset and Management Ltd v. D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi a/k/a D-MARKET Electronic Services & Trading d/b/a/ Hepsiburada, No. 21-cv-08634, the Hepsiburada class action lawsuit seeks to represent purchasers of Hepsiburada American Depositary Receipts (“ADRs”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Hepsiburada’s IPO. 

If you wish to serve as lead plaintiff of the Hepsiburada class action lawsuit, please provide your information by clicking here.  You can also contact attorney Jennifer Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Hepsiburada class action lawsuit must be filed with the court no later than December 20, 2021.

CASE ALLEGATIONS: Hepsiburada operates an e-commerce platform in Turkey, where it is known as the “Amazon of Turkey.”  In its IPO, Hepsiburada sold approximately 62,251,000 ADRs at a price of $12.00 per ADR.  Each ADR represents one Class B ordinary share.  Hepsiburada received proceeds of approximately $783 million from the IPO.

The Hepsiburada class action lawsuit alleges that Hepsiburada’s Registration Statement was materially false and misleading and omitted that: (i) Hepsiburada suffered a sharp deceleration in operational and sales growth during second quarter 2021; (ii) as a result, Hepsiburada initiated certain actions to fortify its competitive position, including investing in electronics and high frequency categories and discounting certain categories; (iii) consequently, Hepsiburada’s revenue and gross merchandise value (“GMV”) had declined during second quarter 2021; and (iv) as such, defendants’ positive statements about Hepsiburada’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

On August 26, 2021, Hepsiburada announced its second quarter 2021 financial results the quarter which had ended before the IPO closed reporting that revenue grew 5.2%, reflecting “the shift in GMV mix in favor of Marketplace.”  Hepsiburada also reported that earnings before taxes, depreciation, and amortization was “negative TRY [the abbreviation for the Turkish lira] 188.6 million in Q2 2021 compared to positive TRY 71.1 million in Q2 2020 . . . due to lower gross contribution driven primarily by investments to fortify our position in electronics, investments to penetrate in high frequency categories as well as higher customer demand for low margin products.”  On this news, Hepsiburada’s ADR price fell approximately 25%, damaging invsestors.  By the commencement of the Hepsiburada class action lawsuit, Hepsiburada’s ADRs were trading as low as $5.30 per ADR, a nearly 56% decline from the $12 per ADR IPO price.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Hepsiburada ADRs pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the Hepsiburada class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Hepsiburada class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Hepsiburada class action lawsuit.  An investor’s ability to share in any potential future recovery of the Hepsiburada class action lawsuit is not dependent upon serving as lead plaintiff. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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