GIGACLOUD TECHNOLOGY INC. – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against GigaCloud Technology Inc. (“GigaCloud” or “the Company”) (NASDAQ: GCT) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired GigaCloud securities from August 15, 2022 through September 27, 2023 (the “Class Period”). Investors who acquired GigaCloud securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is December 4, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased GigaCloud securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST GIGACLOUD TECHNOLOGY INC.
In August 2022, GigaCloud conducted its IPO, selling 3,381,000 Class A ordinary shares at $12.25 per share for net proceeds of approximately $34.2 million. 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.” 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. By the commencement of this action, GigaCloud’s shares have closed as low as $4.27 per share, a 65% decline from the $12.25 per share IPO price. The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose 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; (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.
ABOUT GIGACLOUD TECHNOLOGY INC.
- GigaCloud Technology Inc. operates as a provider of end-to-end B2B e-commerce solutions, primarily catering to the large parcel merchandise sector. The company’s marketplace serves as a connecting bridge between manufacturers, predominantly based in Asia, and resellers spanning regions such as the United States, Asia, and Europe. Its core objective revolves around facilitating cross-border transactions within various categories, particularly those involving larger-sized parcels, such as furniture, home appliances, and fitness equipment.
- Formerly known as Oriental Standard Human Resources Holdings Limited, the company underwent a significant rebranding initiative in February 2021, adopting the name GigaCloud Technology Inc.
- GigaCloud Technology Inc. traces its roots back to its establishment in 2006 and currently maintains its headquarters in Walnut, California. This strategic location situates the company within a region known for technological innovation and a vibrant business environment.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in GigaCloud during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is December 4, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against GigaCloud are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
