NEW YORK, Aug. 18, 2017 /PRNewswire/ -- Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against ZTO Express (Cayman) Inc. ("ZTO" or the "Company") (NYSE: ZTO) securities and certain of its officers, on behalf of a class who purchased ZTO American Depository Shares ("ADSs")pursuant and/or traceable to the Company's initial public offering on or about October 27, 2016. Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/zto.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.
On or about October 27, 2016 Defendants priced the Company's initial public offering ("IPO") for the issuance of approximately 72 million ADSs at $19.50 per share. Since then, the price of ZTO shares has fallen $5.88, or approximately 30% from the IPO price, to close at $13.62 on August 15. 2017.
The Complaint alleges that the Registration Statement and Prospectus issued in connection with the IPO contained materially false and misleading information, and/or failed to disclose material information, to investors. The complaint continues to allege that at the time of the IPO: (1) ZTO improperly inflated its stated profit margins by keeping certain low-margin segments of its business out of its financial statements; (2) ZTO 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; and (3) ZTO exaggerated its profit margins to investors by keeping the "network partners" businesses off its own books.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/zto or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in ZTO you have until October 13, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.