IRVINE, Calif., Aug. 28, 2017 /PRNewswire/ -- Khang & Khang LLP (the "Firm") announces the filing of a securities class action lawsuit against ZTO Express (Cayman) Inc. ("ZTO" or the "Company") (NYSE: ZTO). Investors who purchased or otherwise acquired shares in connection with the October 27, 2016 initial public offering (the "IPO"), are encouraged to contact the Firm in advance of the October 16, 2017 lead plaintiff motion deadline.
If you purchased ZTO shares pursuant or traceable to the IPO, please contact Joon M. Khang, Esq., of Khang & Khang LLP, 4000 Barranca Parkway, Suite 250, Irvine, CA 92604, by telephone at (949) 419-3834, or by e-mail at [email protected].
There has been no class certification in this case yet. Until certification occurs, you are not represented by an attorney. You may choose to take no action and remain a passive class member as well.
According to the Complaint, the Registration Statement and Prospectus issued in connection with the IPO contained materially false and misleading information, and/or failed to disclose material information. At the time of the IPO, ZTO improperly inflated its stated profit margins by keeping certain low-margin segments of its business out of its financial statements. The Company failed to disclose that it used a system of "network partners" to handle lower-margin pickup and delivery services, while maintaining ownership of core hub operations. The Company was able to exaggerate its profit margins to investors by keeping the "network partners" businesses off its own books. Since the IPO, shares of ZTO have declined in value materially, which caused investors harm according to the Complaint.
If you wish to learn more about this lawsuit, or if you have any questions concerning this notice or your rights, please contact Joon M. Khang, Esq., a prominent litigator for almost two decades, by telephone: (949) 419-3834, or by e-mail at [email protected].
This press release may constitute Attorney Advertising in some jurisdictions.
Joon M. Khang, Esq.
SOURCE Khang & Khang LLP