JD.com faces US class action lawsuits as CEO Richard Liu's arrest over rape claim sparks share price slide
China’s second largest e-commerce player is facing class action lawsuits from several US law firms.
JD.com, China’s second largest e-commerce player, is facing class action lawsuits from several US law firms which allege the company may have failed to disclose information pertinent to its chief executive officer Richard Liu Qiangdong, who was arrested in the US last Friday for alleged sexual misconduct.
The Schall Law Firm, Pomerantz LLP and Rosen Law Firm all said separately on Tuesday they are investigating potential securities claims on behalf of shareholders of JD.com. Shares of the Nasdaq-listed company fell US$1.87 or 5.97 per cent to close at US$29.43 on September 4, the first trading day following Liu’s arrest in Minnesota on August 31 for alleged sexual assault.
JD.com is the worst-performing stock on the Nasdaq 100 index, declining 33 per cent in the past six months.
Rosen alleges that JD.com may have issued materially misleading business information to the investing public, while Schall said its investigation focuses on whether the Chinese company issued false and/or misleading statements and/or failed to disclose information pertinent to investors, according to announcements on their respective websites.
Pomerantz, which had not posted details of its class action lawsuit against JD.com on its website as of the time of writing, said in a press release through PRNewswire.com dated September 4 that it is investigating claims on behalf of investors as to whether JD.com and some of its officers and/or directors engaged in securities fraud or other unlawful business practices, which it did not specify.