San Diego, CA -- (SBWire) -- 10/18/2023 --An investor, who purchased shares of GigaCloud Technology Inc. (NASDAQ: GCT), filed a lawsuit over alleged violations of Federal Securities Laws by GigaCloud Technology Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of GigaCloud Technology Inc. (NASDAQ: GCT) have certain options and for certain investors are short and strict deadlines running. Deadline: December 04, 2023. NASDAQ: GCT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Walnut, CA based GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise.
On Augus 18, 2022, GigaCloud Technology Inc announced the pricing of its initial public offering (the "Offering") of 2,940,000 Class A ordinary shares at a public offering price of $12.25 per Class A ordinary share. The gross proceeds of the Offering were expected to be approximately $36 million before deducting underwriting discounts and commissions and offering expenses.
On September 28, 2023, before the market opened, Culper Research published a report alleging "numerous glaring flaws" in GigaCloud's public reporting. For example, the Report stated that while GigaCloud "claims to run 14 U.S. warehouses," the Company "discloses just 73 employees in the entire U.S., implying just 5 employees per warehouse." The Report also alleged that "GigaCloud's marketing materials utilize photoshopped stock photos to portray itself as a highly efficient, growing operation," but that Culper Research's investigators visited some of the Company's warehouses and discovered little activity. Further, the Report alleges that Culper Research uncovered "numerous entities which are neither named subsidiaries nor disclosed as GCT related parties" whose conduct at the very least "suggests undisclosed related party issues."
Shares of GigaCloud Technology Inc. (NASDAQ: GCT) declined to as low as $6.71 per share on September 28, 2023.
The plaintiff claims that between August 18, 2022 and September 27, 2023, the Defendants failed to disclose to investors that the Company's business is a fraction of what it publicly claims, as evidenced by staffing and activity levels at its warehouses, that the Company overstated its last-mile operations, that the Company engaged in undisclosed related party transactions, that, as a result, the Company's financial results were overstated, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Those who purchased shares of GigaCloud Technology Inc. (NASDAQ: GCT) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
GigaCloud Technology Inc. (NASDAQ:GCT) Investor Notice: Lawsuit Alleges Securities Laws Violations
A lawsuit was filed on behalf of investors in GigaCloud Technology Inc. (NASDAQ:GCT) shares over alleged securities laws violations.