Yunji Inc. Class Action Lawsuit
- Company Name
- Yunji Inc.
- Stock Symbol
- Class Period
- Purchasers of Yunji American Depositary Shares pursuant to Yunji’s May 3, 2019 initial public offering
- Motion Deadline
- January 11, 2020
- Eastern District of New York
On November 12, 2019, the Yunji Inc. class action lawsuit was filed charging Yunji, certain of its officers and directors, and the underwriters of the May 3, 2019 initial public offering (“IPO”) with violations of the Securities Act of 1933. The Yunji class action lawsuit was commenced in the Eastern District of New York on behalf of purchasers of Yunji American Depositary Shares (“ADSs”) pursuant to Yunji’s IPO and is captioned Chen v. Yunji Inc., et al., No. 1:19-cv-06403.
Yunji operates a social e-commerce platform in China pursuant to a membership-based business model.
The Yunji class action lawsuit alleges that the Registration Statement for the IPO was materially false and misleading and failed to disclose to investors that: (1) Yunji was shifting certain of its sales to its marketplace platform; (2) Yunji’s supply chain restructuring was likely to disrupt its relationships with suppliers; (3) the supply chain restructuring was likely to have an adverse impact on Yunji’s financial results; and (4) as a result of the foregoing, defendants’ positive statements about Yunji’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 22, 2019, Yunji 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 the second quarter of 2019. On this news, Yunji’s share price declined nearly 11%, to close at $9.39 per share on August 22, 2019. Yunji’s share price continued to decline by more than 35% over the next three trading sessions to close at $6.05 per share on August 27, 2019, on unusually heavy trading volume. By the commencement of the Yunji class action lawsuit, Yunji’s stock was trading as low as $4.40 per share, a 60% decline from the $11 per share IPO price.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Yunji ADSs pursuant to the IPO to seek appointment as lead plaintiff in the Yunji class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Yunji class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Yunji class action lawsuit. An investor’s ability to share in any potential future recovery of the Yunji class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Yunji class action lawsuit or have questions concerning your rights regarding the Yunji class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Yunji class action lawsuit must be filed with the court no later than January 11, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.