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Shareholder Class Action Filed Against Etsy, Inc.

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Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired shares of Etsy, Inc. (Nasdaq: ETSY) (“Etsy”) between April 16, 2015 and  May 10, 2015, inclusive (the “Class Period”). 

Etsy, Inc.  investors may receive additional information about the case by clicking the link "Join this Class Action" above.


According to the complaint, Etsy operates online and offline marketplaces to buy and sell hand-made items, vintage goods, and craft supplies. Its platform connects sellers and buyers to sell or buy products  for art, home and  living, mobile accessories, jewelry, wedding, and others. It  has offices in  Berlin, Germany;  Dublin, Ireland; Hudson, New York; London, United Kingdom; Melbourne, Australia; Paris, France; San Francisco, California; and Toronto, Canada.

The complaint alleges that throughout the Class Period, the defendants made materially false and  misleading statements regarding the company’s business, operational and  compliance  policies.  Specifically,  the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) more than 5% of all merchandise for sale on Etsy’s website  were either counterfeit or constituted trademark or copyright infringement; (2) Brands are increasingly pursuing sellers on Etsy’s platform for trademark or copyright infringement, jeopardizing the company’s  listing fees and commissions; and (3) as a result of the foregoing, Etsy’s public statements were materially false and misleading at all relevant times.

On May 11, 2015, before the market opened for trading, numerous news outlets, including Bloomberg and the Associated Press, reported that Gil Luria, an equity analyst at Wedbush Securities,  issued a note downgrading Etsy to Underperform.  In the note, Gil Luria alleged that more than 5% of  merchandise sold on Etsy’s platform were either counterfeit or violated trademark protections.

Following the release of this news, shares of Etsy fell $1.86, or over 8%, on unusually heavy volume, to close at $20.85 on May 11, 2015.

If you are a member of the class described above, you may no later than July 13, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed 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.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.

Contact 

Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706

Please list your purchase and sale transaction(s) in the Etsy, Inc. security that is subject of this action during the Class Period (between April 16, 2015 and May 10, 2015):

SUBMIT YOUR INFORMATION
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Date
# of Shares
Price per Share
Date
Principal Amount
Amount Paid
Series or CUSIP
Date
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of Etsy, Inc. prior to the Class Period?
Are you a current or former employee of Etsy, Inc.?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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