GigaCloud Technology Inc. (GCT) IPO Case

S.D. New York

Court

1:23-cv-10645

Case number

08/18/2022

Class period Start

09/27/2023

Class period End

12/04/2023

Lead Plaintiff motion deadline

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.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management,

Shareholder,

Investment Bank,

Service Provider

Security Type

Stocks

Trade Direction

Long

Shock Event Date

09/28/2023

Filing date

10/04/2023

Lead Plaintiff Deadline

12/04/2023

Judge

Jesse M. Furman

GigaCloud Technology Inc. (GCT) IPO Case

Collecting participants…