January 27, 2022

Bottini & Bottini, Inc. Files Securities Class Action Lawsuit on Behalf of Persons Who Bought Stock in the IPO of ZTO Express (Cayman), Inc. (NYSE: “ZTO”)

Pin It

SAN DIEGO, Aug. 15, 2017 (GLOBE NEWSWIRE) — Bottini & Bottini, Inc., a law firm specializing in securities class action litigation, announces that it has filed a class action lawsuit on behalf of all persons who purchased the common stock of ZTO Express (Cayman), Inc. (NYSE:ZTO) pursuant to the Registration Statement and Prospectus issued in connection with the Company’s initial public offering (“IPO”). The lawsuit—pending in the United States District Court for the Southern District of New York—seeks to recover damages under the federal securities laws for those who purchased or otherwise acquired ZTO Express’ stock pursuant or traceable to its October 27, 2016 IPO.

Purchasers of ZTO Express securities who wish to serve as lead plaintiff in this lawsuit must apply to the court for lead-plaintiff appointment no later than October 16, 2017. If you purchased ZTO Express’ stock in connection with its IPO and suffered losses, please contact plaintiff’s counsel, Frank A. Bottini, Esq., of Bottini & Bottini, at (858) 914-2001 or[email protected], to discuss your rights and interests in this lawsuit. You can also go to Bottini & Bottini’s website (http://www.bottinilaw.com) for more information.

The lawsuit charges that ZTO, certain of its directors and officers, and underwriters of its IPO violated Sections 11, 12, and 15 of the Securities Act of 1933. Defendants priced ZTO’s IPO shares at $19.50 per share.  Through the IPO, defendants issued and sold over 72 million ADSs, generating over $1.36 billion for defendants. The lawsuit alleges that the IPO Registration Statement and Prospectus contained materially false and misleading information, and failed to disclose that that ZTO was improperly inflating its stated profit margins by keeping certain low-margin segments of its business out of its financial statements. ZTO failed to disclose that it 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 allegedly was able to exaggerate its profit margins to investors.

Subsequent to the IPO, ZTO Express’ stock declined immediately.  As of August 11, 2017, the stock was trading at just $13.25 – a decline of over 32% from the IPO price.

If you wish to join the litigation or discuss your interests in this lawsuit, contact Frank A. Bottini of Bottini & Bottini at (858) 914-2001 or [email protected].Bottini & bottini

 

Print Friendly, PDF & Email
About ieyenews

Speak Your Mind

*