ZTO Express (Cayman) Inc. (ZTO)
Defendants' Motion to Dismiss and Lead Plaintiffs' Opposition are currently pending before the Court.
Hagens Berman Sobol Shapiro has filed an Amended Complaint against ZTO Express (Cayman) Inc. (NYSE: ZTO) and their affiliates on behalf of those who purchased or otherwise acquired ZTO American Depositary Shares (“ADSs”) issued in connection with ZTO’s October 2016 initial public stock offering of approximately $1.4 billion ADSs.
Defendants’ 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.
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.
Hagens Berman was appointed lead counsel on November 13, 2017, and filed an Amended Complaint on January 5, 2018. Defendants filed a Motion to Dismiss on February 20, 2018, which Plaintiffs opposed on April 27, 2018. The Motion is currently pending before the Court.
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