RADNOR, Pa., Aug. 18, 2017 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company") on behalf of purchasers of the Company's securities issued pursuant and/or traceable to the Company's initial public offering on or about October 27, 2016 (the "IPO").
Investors who purchased ZTO securities pursuant or traceable to the Company's IPO may, no later than October 16, 2017, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information please visit https://www.ktmc.com/new-cases/zto-express-cayman-inc#join.
ZTO investors who wish to discuss their legal rights or interests with respect to this action are encouraged to contact Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (888) 299 – 7706 or (610) 667–7706, or via e-mail at [email protected]
ZTO provides express delivery and other logistic services in China and worldwide. On or about October 27, 2016, ZTO completed an IPO of its shares, selling 72 million shares to investors at $19.50 per share for gross proceeds of $1.4 billion.
The complaint alleges that, at the time of the IPO, "ZTO was improperly inflating its stated profit margins by keeping certain low-margin segments of its business out of its financial statements." The complaint further alleges that "ZTO used a system of 'network partners' to handle lower-margin pickup and delivery services, while maintaining ownership of core hub operations," and that by "keeping the 'network partners' businesses off its own books, the Company was able to exaggerate its profit margins to investors."
ZTO shareholders may, no later than October 16, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP