The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Baozun, Inc. (“Baozun” or the “Company”) (NASDAQ: BZUN) securities during the period from March 6, 2019 through November 20, 2019 (the “Class Period”) and/or pursuant to the Company’s April 2019 American Depository Receipt (“ADR”) offering or April 2019 offering of convertible senior notes due 2024. Investors have until February 10, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Baozun failed to disclose that Huawei Technologies Co., Ltd. (“Huawei”), a Chinese-based multi-national technology company, was one of Baozun’s largest brand partners, on a historical basis, and paid more add-on fees for the work Baozun did for it, increasing the revenues Baozun received for Huawei work compared to Baozun’s other brand partners. This caused Baozun to report outsized revenue growth during the first half of 2019, which would be abruptly cut off during the second half 2019, after Baozun restructured its relationship with Huawei, as Huawei took much of its online merchandizing in-house.
On or about April 10, 2019, Baozun sold at least 2.25 million ADRs at $40.00 each, raising $90 million through underwriters and loaning to be sold by those underwriters another 1.98 million ADRs. That same day, Baozun also closed a concurrent offering of $225 million in aggregate principal amount of Notes and the sale of an additional $50 million in aggregate principal amount of the Notes pursuant to the exercise by the initial purchasers in full of an option to purchase additional Notes, receiving net proceeds of approximately $269 million.
On November 21, 2019, Baozun announced disappointed financial results for the third quarter of fiscal year 2019 and provided its fourth quarter financial guidance including revenues of $210.3 million compared to the expected $214 million and per ADR of $0.14 compared to the expected $0.15. Baozun also disclosed the electronics customer loss would negatively impact results for the rest of 2019 and for the first half of 2020, stating that expected revenues for the fourth quarter were in the range of $384 million to $391.2 million, well below the expected $401 million. On this news, the price of Baozun ADRs fell $7.60, or 17.5%, to close at $35.90 per ADR on November 21, 2019.
If you acquired Baozun securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.