ZTO Express (Cayman) Inc. (ZTO)
Hagens Berman reminds investors in ZTO Express (Cayman), Inc. (NYSE: ZTO) of the October 16, 2017 Lead Plaintiff deadline in the securities class action filed in the United States District Court for the Southern District of New York. In addition, a securities class action has been filed in the Superior Court of the State of California, County of San Mateo.
If you purchased or otherwise acquired American Depository Shares (“ADSs”) of ZTO pursuant and/or traceable to the Company’s initial public offering on or about October 27, 2016 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing ZTO@hbsslaw.com.
On or about October 27, 2016, Defendants priced the Company’s initial public offering (“IPO”) for the issuance of approximately 72 million ADSs at $19.50 per share. Since then, the price of ZTO shares has fallen nearly 25% to close at $14.64 on September 25, 2017.
The lawsuits allege that the IPO Registration Statement and Prospectus touted purported advantages of ZTO’s “network partner” and “shared success” business model but omitted disclosing that, two quarters before the IPO, ZTO lowered its network transit fees to subsidize its network partners in response to increased operating costs, pricing pressure, competition and other negative market conditions.
“Among other things, we’re focused on are the Defendants’ omissions of pre-IPO facts that, when they surfaced after the IPO, appear to have severely damaged ZTO investors,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding ZTO should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email ZTO@hbsslaw.com.
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