Beijing-based e-commerce firm LightInTheBox Holding Company Ltd. is facing a possible securities class action lawsuit against it and some of its senior officers.
Law firm Robbins Geller Rudman & Dowd LLP says that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of LightInTheBox's American Depository Shares inclusive of the period between its June 6, 2013, initial public stock offering and August 19, 2013.
The complaint charges LightInTheBox and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued materially false and misleading statements regarding the company's financial performance and future prospects. For example, defendants allegedly misrepresented or failed to disclose the company's sales growth had dramatically decreased during the second quarter of 2013, the period ended June 30, 2013.
The complaint also alleges LightInTheBox's costs had grown more than its sales during the second quarter of 2013. Thus, the class action alleges the company was not on track to achieve the financial results defendants had led the market to expect during the period.
LightInTheBox says it has become aware of the filing and has reviewed the claims asserted in the complaint. The company says it believes the claims are without merit.