Cohen, Placitella & Roth, P.C. is Investigating Jumei International Holding Limited for Possible Securities Laws Violations

PHILADELPHIA, Dec. 18, 2014 /PRNewswire/ -- Cohen, Placitella & Roth, P.C. is investigating potential claims on behalf of investors who purchased Jumei International Holding Limited ("Jumei" or "Company") (NYSE: JMEI) during the period from May 16, 2014 through November 19, 2014 ("Class Period").  The investigation concerns whether Jumei and certain of its officers, directors and underwriters of its May 10, 2014 initial public offering ("IPO") violated federal securities laws.

Jumei is China's largest online, discount beauty products retailer.  At the time of its IPO, the Company both sold products directly to consumers and sold products from third-party merchants, charging "marketplace services" fees on those sales.  In the year prior to the IPO, the Company achieved 30% of its gross merchandise value from marketplace services.

On May 16, 2014, Jumei commenced its IPO at $22 per share.  Falsely touting an expansion of the Company's marketplace services, the IPO offering documents omitted that the Company already intended to cease offering those services in favor of direct merchandise sales.  Jumei also failed to disclose that third-party merchants may have used its platform to sell counterfeit goods, but that just prior to the IPO, China had enacted a new consumer protection law to hold liable marketplace sellers such as Jumei for such sales.  Jumei's undisclosed strategy to transition away from offering profitable marketplace services posed material risks to the Company's financial prospects. 

On November 19, 2014, Jumei disclosed disappointing quarterly earnings on slower than anticipated growth.  The Company's gross profit margin had eroded and it was experiencing its slowest growth on record.  Shortly thereafter, a Barron's article, titled "Why Jumei's Business Model is Broken.  Selling Authentic Makeup is costly," disclosed that the Company's shift away from third-party merchant sales had severely limited Jumei's offerings of top brands.  On this news, Jumei's stock fell precipitously by 13% to $19.32, 12% below the IPO price and well off a post IPO high of $39.45.

If you have any information about this investigation or, if you wish to discuss your rights as a shareholder in Jumei, please contact Eduardo A. Texidor, Jr., no later than January 27, 2015, at [email protected] or, toll free, at 1-888-375-7600.  In particular, if you purchased from underwriters Goldman Sachs (Asia) L.L.C., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, China Renaissance Securities (Hong Kong) Limited, Piper Jaffray & Co. and Oppenheimer &Co. Inc., and suffered a loss, you may have certain rights in addition to others who may have purchased shares in the open market.  To perfect those rights, please contact Eduardo A. Texidor, Jr.  For those investors inquiring via email, please be sure to include "Jumei" in the subject line, the number of shares purchased, and your mailing address and telephone number.   

Since 1973, Cohen, Placitella & Roth, P.C. has been recognized as one of the premier trial law firms in the country.  The firm has extensive experience in prosecuting securities litigation involving violations of the federal securities laws, state law derivative actions, and mergers and acquisitions cases, representing institutional investors such as public pension plans and union pension funds, as well as individual shareholders suffering substantial investment losses due to corporate misconduct.  LexisNexis Martindale-Hubbell® annually reports Cohen, Placitella & Roth's peer rating-the highest AV® - "a testament to professional excellence."  Since the inauguration of its "Best Law Firms" edition in 2010, U.S. News and World Report has annually listed Cohen, Placitella & Roth's as one of the top-tier class action law firms in the country.

Contact:
Eduardo A. Texidor, Jr.
Cohen, Placitella & Roth, P.C.
Toll free: 1-888-375-7600
[email protected]
www.cprlaw.com

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SOURCE Cohen, Placitella & Roth, P.C.

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