According to the Complaint, Yunji operates a social e-commerce platform in China based on a membership-based model. It purports to offer high-quality products at attractive prices and incentivizes its members to promote the platform with their social contacts.
On April 30, 2019, the Company filed its final amendment to the Registration Statement with the SEC on F-1/A, which forms part of the Registration Statement. The Registration Statement was declared effective on May 2, 2019.
On May 3, 2019, the Company held its IPO in which it sold 11,217,447 shares for $11.00 per share.
The Complaint alleges that the Registration Statement was false and misleading and omitted to state material adverse facts. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company was shifting certain of its sales to its marketplace platform; (2) that this supply chain restructuring was likely to disrupt Yunji’s relationships with suppliers; (3) that this supply chain restructuring was likely to have an adverse impact on the Company’s financial results; and (4) 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.
On February 3, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on March 19.