NEW YORK, NY / ACCESSWIRE / October 21, 2023 / Pomerantz LLP is investigating claims on behalf of investors of GigaCloud Technology Inc. ("GigaCloud" or the "Company") (NASDAQ:GCT). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.comor 888-476-6529, ext. 7980.
The investigation concerns whether GigaCloud and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around August 18, 2022, GigaCloud conducted its initial public offering ("IPO"), selling 3,381,000 Class A ordinary shares priced at $12.25 per share. Then, on September 28, 2023, before the market opened, Culper Research published a report entitled "GigaCloud Technology Inc (NASDAQ:GCT): If It's Too Good To Be True..." (the "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, GigaCloud's stock price fell $1.78 per share, or 18%, to close at $7.69 per share on September 28, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
SOURCE: Pomerantz LLP
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