Vipshop Holdings Limited

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Case Summary
Company Name: Vipshop Holdings Limited
Stock Symbol : (NYSE: VIPS)
Class Period Start: 02/17/2015
Class Period End: 05/11/2015
Lead Plaintiff motion: 07/20/2015
Date Filed: 05/19/2015
Type of Case: Securities Class Action
Court: U.S. District Court for the Southern District of New York
Summary:

Thieler Law Corp advises investors with losses exceeding $100,000 of the July 20, 2015 lead plaintiff deadline in a class action lawsuit filed against Vipshop Holdings Limited (NYSE: VIPS)  (“Vipshop Holdings” or “the Company”). The suit is pending in the U.S. District Court for the Southern District of New York and investors, who purchased Vipshop Holdings securities between February 17, 2015 and May 11, 2015, have until July 20, 2015 to move for lead plaintiff. You do not need to move for lead plaintiff to be a member of the Class.

If you purchased Vipshop Holdings securities during the Class Period, and have losses over $100,000, you may contact Thieler Law Corp by calling at (619) 866-6157 or emailing mail@thielerlaw.com.  No class has been certified in this case, and if your losses are less than $100,000 you are still a member of the class.

The complaint alleges that during the Class Period defendants made false and misleading statements and/or allegedly failed to disclose that Vipshop Holdings Limited manipulated and overstated sales, receivables, profit, cash flows, and asset accounts including inventory and investments.  In addition to those claims the complaint further alleges that Vipshop Holdings’s financial statements contain GAAP violations by reporting revenue on a ‘gross’ basis, despite the fact that the vast majority of the company’s sales are under a consignment arrangement; that Vipshop Holdings’s internal controls over financial reporting were ineffective; and as a result of the foregoing, Vipshop Holdings’s public statements were materially false and misleading at all relevant times.

On May 12, 2015, Mithra Forensic Research published a report on Vipshop Holdings claiming, among other things, that forensic models suggest Vipshop Holdings manipulated sales, receivables, profit and other asset accounts; and that the Company’s financial statements have been contradicted by management's own disclosures in several instances.

After the release of this report, Vipshop Holdings shares dropped $1.54 per share, or over 5%, to close at $25.78 per share May 12, 2015.

On May 14, 2015, during the Company’s earnings conference call, it was revealed that Vipshop Holdings was the subject of another shortseller report issued by J Capital Research. According to an article published later that day by TheStreet.com, the J Capital Report presented research “[c]iting discrepancies in the company's accounting” and stating that the Company’s “financial filings in China are vastly different than the filings with the Securities and Exchange Commission, leading to concerns that the company's results are not accurate.”

As a result of this news, Vipshop Holdings shares dropped $1.45 per share, or over 5.4%, to close at $25.21 per share May 14, 2015.

If you were negatively impacted by your investment in Vipshop Holdings securities between February 17, 2015 and May 11, 2015 and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.

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