SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Vipshop Holdings Ltd. of Class Action Lawsuit and Upcoming Deadline against Goldman Sachs Group Inc. and Morgan Stanley
NEW YORK, November 25, 2021 / PRNewswire / – Pomerantz LLP announces that Goldman Sachs Group Inc. and Morgan Stanley (collectively, the “Defendant”) have filed a class action on behalf of investors in Vipshop Holdings Ltd. (“Vipshop” or the “Company”) (NYSE: VIPS). The class action filed in The United States District Court for the southern district of new York, and registered under 21-cv-09420, is on behalf of all those investors who hold Vipshop shares concurrently with the illegal transactions of the defendants of. bought or otherwise acquired March 22, 2021 through and including March 29, 2021 (the “Class Period”), pursuant to Sections 20A, 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 USC Sections 78t-1, 78j (b), and 78t (a).
If you are a shareholder who purchased Vipshop’s securities during the Class Action Period, you have up to December 13, 2021 ask the court to appoint you as the lead plaintiff for the class action. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, please contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, extension. 7980. Inquiries by email are encouraged to include their postal address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Archegos Capital Management (“Archegos”), a family office mutual fund, was founded and operated by Sung Kook Hwang (“Hwang”), a former portfolio manager of Tiger Asia Management, a hedge fund he founded.
Goldman Sachs and Morgan Stanley are global financial services institutions that have served as two of Archegos’ primary brokers, helping the company do business and lending it capital in the form of margin loans.
Archegos has held large, concentrated positions in companies such as ViacomCBS Inc. (“ViacomCBS”), Vipshop Holdings Ltd., Discovery Inc., Farfetch Ltd. (“Farfetch”), Gaotu Techedu, Inc., Baidu Inc. (“Baidu”), iQIYI Inc., and Tencent Holdings Ltd. through financial instruments known as total return swaps, the underlying securities being held by banks that broker the investments.
Unbeknownst to investors and regulators, several large brokerage banks, including the defendant, had simultaneously enabled Archegos to gain billions in volatile stocks through swap contracts, dramatically increasing the risk of these concentrated positions.
on March 23, 2021 ViacomCBS announced a new one $ 3 billion offers to fund investments in its streaming service Paramount +, which launched earlier this month.
on March 25, 2021, one of Wall Street’s most influential market research firms, MoffettNathanson, released a report that challenged the value of ViacomCBS, downgraded the stock to “Sell” and set a price target of only. was established $ 55 per share compared to $ 85 Offer. “We never thought we would see Viacom[CBS] Trade near $ 100 per share, “it said in the report.” Obviously, the management of ViacomCBS also does not, “it continued, citing the new share offering.
As a result of that report, ViacomCBS stock slumped, losing more than half its value in less than a week. Indeed, until the close of trading on Friday March 26th 2021, ViacomCBS was worth it $ 48 per share.
This proved extremely problematic for Archegos, who had been trading ViacomCBS on margin. Since Archegos had to hold a certain amount of collateral to satisfy its lenders, and since the value of ViacomCBS stock has plummeted, Archegos needed enough collateral to cover or a margin call (where the lender can force a sell-off of the stock) . to bring the investor back into compliance with the margin requirements) could be triggered.
on March 27, 2021, it was reported that Archegos did not mare and, as a result, more than. had to liquidate $ 20 billion its leveraged equity positions Friday March 26th 2021.
The lawsuit alleges that during the entire collection period, the defendants held a large number of Vipshop shares in the week of Jan. March 22, 2021while in possession of material, non-public information. Later media reports said the defendants dumped large block trades made up of stocks in Archegos’ doomed bets, including billions in Vipshop stocks, at the end of the year Thursday March 25, 2021before the Archegos story leaked to the public and left Vipshop stock in a tailspin.
As a result of these sales, the defendants avoided losses running into billions.
Defendants knew or did not know that they were prohibited from trading on the basis of this confidential market-moving information, but acted anyway and sold their Vipshop shares to the plaintiff and other members of the group before the news was announced about Archegos and the Vipshop shares broke in.
As a result, the plaintiff and the class was harmed by defendants’ violations of US securities laws.
Pomerantz LLP, with offices in new York, Chicago, The angel, Paris, and Tel Aviv, is recognized as one of the leading law firms in corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzKnown as the Dean of the Class Action Chamber, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he founded and fights for the rights of victims of securities fraud, breach of duty of loyalty and corporate misconduct. The company has collected numerous millions of dollars in damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP