Vipshop Holdings Ltd.
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 Vipshop Holdings Ltd. (“Vipshop” or the “Company”) (NYSE: VIPS) American Depository Shares (“ADSs”) from March 22, 2021 through March 29, 2021 (the “Class Period”). Investors have until December 13, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Vipshop is a leading online discount retailer for brands in China. The Company offers high quality and popular branded products to consumers throughout China at a significant discount from retail prices.
Both Goldman Sachs and Morgan Stanley are global financial services institutions that served as prime brokers for Archegos Capital Management (“Archegos”), a family office with $10 billion under management, helping Archegos make trades and lending it capital in the form of margin lending. On April 6, 2021, CNBC published an article that Morgan Stanley had “quietly unloaded some of its risky positions to hedge funds” before the story of Archegos’ “doomed bets to a small group of hedge funds” reached the public.
On this news, the Company’s share price declined by $1.99 per share, or approximately 6.3%, from $31.50 per share to close at $29.51 per share on April 7, 2021.
The lawsuit alleges throughout the Class Period, Defendants traded while in possession of material non-public information and that: (1) Defendants obtained the material non-public information pursuant to their agreements with Archegos and as a result of their serving as prime brokers of Archegos; (2) Defendants knew, recklessly disregarded, or should have known that they owed a fiduciary duty, or obligation arising from a similar relationship of trust and confidence, to Archegos to keep the information confidential; and (3) nevertheless, while in possession of material, non-public adverse information, Defendants collectively sold billions of dollars’ worth of Company shares.