Company: Ruhnn Holding Limited
Court: U.S.D.C. – Eastern District of New York
Deadline: December 6, 2019
A shareholder class action complaint has been filed against Ruhnn Holding Limited (“Ruhnn” or the “Company”) (Nasdaq: RUHN) on behalf of investors who purchased shares of the Company’s securities pursuant and/or traceable to the Company’s initial public offering (“IPO”) of shares on or about April 3, 2019.
Ruhnn describes itself as China’s largest key opinion leader (“KOL”) facilitator and largest KOL facilitator in China’s e-commerce market. So-called KOLs are essentially social media influencers, i.e., individuals who create content on social media platforms such as Facebook, YouTube, Tik Tok, and Instagram with the hope of garnering a large public following. As a purported KOL facilitator, Ruhnn contracts with social media influencers who are paid to promote, market, and advertise products and services to their fans and followers.
On or about April 3, 2019, Ruhnn completed its IPO, selling 10 million shares to investors at $12.50 per share, for proceeds of $125 million.
According to the complaint, on June 14, 2019, Ruhnn reported its fiscal year and fourth quarter 2019 financial results. These results were for the quarter prior to the quarter in which defendants had conducted the IPO. Therein, Ruhnn reported that (as of March 31, 2019) the Company only had 56 stores in operation – which indicates the Company has closed nearly 40% of the 91 stores defendants reported operating in the IPO offering materials. Additionally, the Company disclosed that Ruhnn’s product sales had fallen 46% sequentially and grown by a meager 1.4% year over year.
Ruhnn’s shares are currently trading below $5.00 per share, representing a cumulative decline in value of over 60% from when they were sold to investors in April 2019.
Ruhnn investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715–1740, or by completing the information form on this page, for additional information about this action and their legal rights and options.