Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on
Behalf of LightInTheBox Holding Co., Ltd. Investors
NEW YORK -- October 1, 2013
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. § 240.10b-5].
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
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 email@example.com, or visit our website at www.whafh.com. All e-mail
correspondence should make reference to “LightInTheBox”.
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory M. Nespole, Esq., 800-575-0735
Press spacebar to pause and continue. Press esc to stop.