LOS ANGELES, Feb. 07, 2020 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors of the upcoming February 10, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of Baozun Inc. (“Baozun” or the “Company”) (NASDAQ: BZUN) investors who purchased securities between March 6, 2019 and November 20, 2019, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On November 21, 2019, Baozun announced third quarter 2019 financial results that were below market expectations, and provided dismal fourth quarter 2019 financial guidance. The Company attributed the negative results and outlook to adverse impacts from terminating its service agreement with one electronics brand. Baozun did not disclose who that large electronics brand was, but some in the financial media have suggested that it was Huawei.
On this news, Baozun’s share price fell $7.60 per share, or more than 17%, to close at $35.90 per share on November 21, 2019.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Baozun was heavily reliant upon a single brand partner, Huawei, for the exponential service fee growth it had been reporting historically, which was in turn fueling its historical revenue growth; (2) that, compared to other brands Baozun had as brand partners, the Huawei work had historically included a lot of additional add-on service fees, increasing the revenue reported from Huawei vis-à-vis its other brand partners; (3) that Huawei, like other large brands, was actively preparing to bring its online merchandising in-house, meaning Baozun knew that it was losing a significant brand partner; and (4) that, as a result of the foregoing, the Company was not on track to achieve the financial results and performance Defendants claimed the Company was on track to achieve during the class period.
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If you purchased or otherwise acquired Baozun securities during the Class Period, you may move the Court no later than February 10, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com