LightInTheBox Holding Co., Ltd. Sued by Investor
Robbins LLP announce that an investor of LightInTheBox Holding Co., Ltd. (NYSE: LITB) (“LightInTheBox”) has filed a complaint in the U.S. District Court for the Southern District of New York on behalf of purchasers of LightInTheBox American Depository Shares. The complaint alleges that the company and certain of its officers violated the Securities Exchange Act of 1934 between June 6, 2013 and August 19, 2013 (the “Class Period”). LightInTheBox, through its subsidiaries, operates as an online retailing company.
LightInTheBox Accused of Making False and Misleading Statements
According to the complaint, certain LightInTheBox officers made false and misleading statements and failed to disclose information regarding the company’s financial performance and business prospects. Specifically, the complaint alleges that, throughout the Class Period, certain company officers misrepresented and failed to disclose that the company began to experience a dramatic decrease in sales growth during the second quarter of 2013. Further, the complaint alleges that certain LighInTheBox officers were aware, but failed to disclose, that the company’s costs had outpaced sales growth in the second quarter 2013. As a result, LightInTheBox was not on pace to reach the financial targets maintained by the company during the Class Period.
LightInTheBox Stock Drops on Disappointing Revenue
On August 19, 2013, according to the complaint, less than on one month after the company’s IPO, LightInTheBox announced its financial results for its second quarter ended June 30, 2013. The company reported quarterly revenue of $72.2 million and a profit of $.05 per share, in contrast to a profit of $.06 and revenue of $75.8 million the company had led analysts to expect. In addition, the company announced that it expected third quarter revenue of $68 million to $70 million, instead of the $75.8 million the investment community had been led to expect. On this news, LightInTheBox shares dropped nearly 40%, or $7.69 per share, to close at $11.58 on August 20, 2013.
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