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id: 841, Created by Stan Vick, Scout
GigaCloud Technology Inc. (GCT) IPO Case
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On September 28, 2023, Culper Research published a report alleging “numerous glaring flaws” in GigaCloud’s public reporting.
- 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.
- 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, $GCT fell 18% and closed as low as $4.27 per share, a 65% decline from the $12.25 per share IPO price.
Taking all representations into account, shareholders who participated in the IPO have reasons to suspect GigaCloud and involved accountable parties of lying about the true operational and financial metrics of the business.
Failure to Disclose,
Shock Event Date
28 September 2023
04 October 2023
Lead Plaintiff Deadline
04 December 2023