A class action lawsuit has been filed against China's leading online retailer of beauty products, Jumei.
The lawsuit represents a number of people who bought American Depositary Shares (ADSs) of Jumei as a result of a statement connected to the company's IPO on 16 May 2014.
The complaint, filed in the United States District Court for the Eastern District of New York, alleges that Jumei and some of its officers violated federal securities law by sharing false and misleading statements with the public.
Specifically, Jumei is accused of making false or misleading statements and/or failing to disclose changes to its revenue model; that the transition posed a significant risk to Jumei's financial performance; and that Jumei was not expanding its marketplace services as claimed.
On 11 December 2014, shares of Jumei declined from as high as $39.45 on 18 August 2014 to as low as $12.87.
