If you purchased or acquired (i) GigaCloud Class A ordinary shares pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s August 2022 initial public offering (“IPO” or the “Offering”); and/or (ii) GigaCloud securities between August 18, 2022 and September 27, 2023, and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/GCT.
There is no cost or obligation to you.
NEW YORK, Nov. 26, 2023 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against GigaCloud Technology Inc. (“GigaCloud” or the “Company”) (NASDAQ: GCT) and reminds investors of the December 4, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
The complaint filed in this class action alleges that in Giga Cloud’s Registration Statement, and throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose the following to investors: (1) that the Company’s business is a fraction of what it publicly claims, as evidenced by staffing and activity levels at its warehouses; (2) that the Company overstated its last-mile operations; (3) that the Company engaged in undisclosed related party transactions; (4) that, as a result, the Company’s financial results were overstated; and (5) 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.
In August 2022, GigaCloud conducted its IPO, selling 3,381,000 Class A ordinary shares at $12.25 per share, generating net proceeds of approximately $34.2 million.
On September 28, 2023, before the market opened, Culper Research published a report (the “Report”) alleging that there were “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 visits by Culper Research’s investigations to some of the Company’s warehouses revealed 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.”
On this news, the Company’s share price fell $1.78, or 18%, to close at $7.69 per share on September 28, 2023, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding GigaCloud’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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