NEW YORK, NY / ACCESSWIRE / May 15, 2015 / Pomerantz LLP is investigating claims on behalf of investors of Vipshop Holdings Limited ("Vipshop" or the "Company") (NYSE: VIPS). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 237.
The investigation concerns whether Vipshop and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On May 12, 2015, a report published by Mithra Forensic Research asserts that it: (1) questioned the Company's method of revenue recognition and allege that the Company relied upon an incorrect application of gross revenue basis reporting; (2) stated that the Company improperly commingled inventory-held-on-consignment with purchased inventory, thereby increasing its reported ending inventory and decreasing its cost-of-sales; (3) contended that the Company recorded significantly increased levels of "Other Receivables" which potentially reflect abusive related-party transactions ("RPTs"); and (4) asserted that the Company exaggerated and accelerated its capital expenditures ("CAPEX") to industry-leading levels, despite having significant excess capacity.
On this news, shares of Vipshop fell $1.54 per share, to $25.78, or more than 5.60%, on May 12, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
