SAN DIEGO, Oct. 18, 2023 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired GigaCloud Technology Inc. (NASDAQ: GCT): (a) class A ordinary shares in connection with the Company's August 22 initial public offering ("IPO"); and/or (b) securities between August 18, 2022 and September 27, 2023. GigaCloud is a holding company which, through its subsidiaries, offers an end-to-end ecommerce platform for global trade services of heavy and large products, primarily furniture.
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What is this Case About: GigaCloud Technology Inc. (GCT) Misled Investors in Connection with its IPO
According to the complaint, during the class period, defendants failed to disclose to investors that: (1) the Company’s business is a fraction of what it publicly claims, as evidenced by staffing and activity levels at its warehouses; (2) the Company overstated its last-mile operations; (3) the Company engaged in undisclosed related party transactions; and (4) as a result, the Company’s financial results were overstated.
On September 28, 2023, Culper Research published a report titled “GigaCloud Technology Inc (NASDAQ:GCT): If It’s Too Good To Be True...”, alleging “numerous glaring flaws” in GigaCloud’s public reporting. For example, the report stated that while GigaCloud “claims to run 14 U.S. warehouses,” the Company “discloses just 73 employees in the entire U.S., implying just 5 employees per warehouse.” The Report also alleged that “GigaCloud’s marketing materials utilize photoshopped stock photos to portray itself as a highly efficient, growing operation,” but that Culper Research’s investigators visited some of the Company’s warehouses and discovered little activity. Further, the Report alleges that Culper Research uncovered “numerous entities which are neither named subsidiaries nor disclosed as GCT related parties” whose conduct at the very least “suggests undisclosed related party issues.” On this news, the Company’s share price fell $1.78, or 18%, to close at $7.69 per share on September 28, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against GigaCloud Technology Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by December 4, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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