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GCT.US
id: 841
GigaCloud Technology Inc. (GCT) IPO Case
S.D. New York
Court1:23-cv-10645
Case number18 Aug 2022
Class period Start27 Sept 2023
Class period End04 Dec 2023
Lead Plaintiff motion deadlineOn 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
Lead Plaintiff Appointed
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
28 September 2023
Filing date
04 October 2023
Lead Plaintiff Deadline
04 December 2023
Judge
Jesse M. Furman