ZTO investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, ZTO, through its subsidiaries, provides express delivery and other value-added logistics services in China. It offers delivery services for e-commerce merchants, traditional merchants, and other express service users, as well as through business partners.
On September 30, 2016, ZTO filed a registration statement on Form F-1 with the SEC. On October 24, 2016, ZTO filed its final amendment to the Registration Statement, which registered over 82 million ZTO shares for public sale. The Registration Statement contained a preliminary prospectus. The final prospectus was filed on October 28, 2016 (the “Prospectus”). The Registration Statement and the Prospectus are collectively referred to herein as the “Registration Statement.”
The SEC declared the Registration Statement effective on October 26, 2016. ZTO priced the IPO at $19.50 per share and filed the final Prospectus for the IPO, which forms part of the Registration Statement. Through the IPO, the defendants issued and sold over 72 million ADSs, generating over $1.36 billion for defendants.
The complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that ZTO was improperly inflating its stated profit margins by keeping certain low-margin segments of its business out of its financial statements. ZTO used a system of “network partners” to handle lower-margin pickup and delivery services, while maintaining ownership of core hub operations. By keeping the “network partners” businesses off its own books, the company was able to exaggerate its profit margins to investors.
As of the date of the filing of the complaint, ZTO shares traded at approximately $13.25.
If you are a member of the class described above, you may no later than October 16, 2017 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 toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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