According to the law firm press release, Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People’s Republic of China. It offers a range of branded products, including women's apparel, such as casual wear, jeans, dresses, outerwear, swimsuits, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; women and men shoes for casual and formal occasions; and accessories consisting of belts, jewelry, watches, and glasses for women and men.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Vipshop manipulated and overstated sales, receivables, profit, cash flows, and asset accounts including inventory and investments; (2) Vipshop’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; (3) Vipshop’s internal controls over financial reporting were ineffective; and (4) as a result of the foregoing, Vipshop’s public statements were materially false and misleading at all relevant times.

On May 12, 2015, Mithra Forensic Research published a report on Vipshop (the “Mithra Report”) asserting, among other things, that: (1) forensic models suggest Vipshop manipulated sales, receivables, profit and other asset accounts; and (2) Vipshop’s financial statements have been contradicted by management's own disclosures in several instances.

As a result of this news, shares of Vipshop fell $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 was the subject of another shortseller report issued by J Capital Research (the “J Capital Report”). 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, shares of Vipshop fell $1.45 per share, or over 5.4%, to close at $25.21 per share May 14, 2015.

This case was voluntarily dismissed on November 24, 2015.