RADNOR, Pa., December 04, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP advises investors that a securities class action lawsuit has been filed in United States District Court for the Southern District of New York v D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi a / k / a D-MARKET Electronic Services & Trading d / b / a Hepsiburada (“Hepsiburada”) (NASDAQ: HEPS). The action accuses the company of violations of federal securities laws, including fraudulent omissions and misrepresentation involving its American Depositary Receipts (“ADRs”) in accordance with and / or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in as part of Hepsiburada’s initial public offering (“IPO”) in July 2021. Hepsiburada’s misleading statements regarding their business, operations and prospects have caused significant losses to investors.
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PRINCIPAL COMPLAINANT DEADLINE: 20 December 2021
CATEGORY PERIOD: In accordance and / or traceable until July 1, 2021 IPO until October 21, 2021
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or toll free (844) 887-9500 or by email at [email protected]
ALLEGED HEPSIBURADA FAULT
Hepsiburada operates an e-commerce platform in Turkey, which is considered “the Amazon of Turkey”. On July 1, 2021, Hepsiburada filed its prospectus on a Form 424B4, which is part of the registration statement. Pursuant to the IPO, Hepsiburada sold approximately 62,251,000 ADR at a price of ADR $ 12 and received proceeds of approximately $ 783 million from the Offer. The registration statement touted Hepsiburada’s alleged growth due to “meticulous execution.” The registration statement also touted the increase in the gross value of goods (“GMV”), which “refers to the total value of orders / products sold through [the] platform over a given period of time ”, including shipping costs but excluding other service income and transaction costs.
The truth about Hepsiburada came to light on August 26, 2021, when it announced its financial results for the second quarter of 2021 (the quarter that ended before the IPO closed) showing that earnings before interest, taxes , Depreciation and Amortization, or EBITDA, was “negative TRY 188.6 million in Q2 2021 compared to a positive TRY 71.1 million in Q2 2020.. due to a lower gross contribution, mainly due to investments to strengthen our position in electronics, investments to break into high frequency categories as well as increased customer demand for low margin products. The company also reported a “change in mix GMV in favor of Marketplace “.
Following this news, the price of Hepsiburada’s ADR fell $ 3.05, or 25%, to close at $ 8.97 per ADR on August 26, 2021. At the time the class action lawsuit was filed, Hepsiburada’s ADRs were trading at $ 5.30 per ADR, almost 56% down from the IPO price of $ 12 per ADR.
WHAT CAN I DO?
Hepsiburada investors can, no later than December 20, 2021, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may elect to do nothing and remain an absent member of the class. Kessler Topaz Meltzer & Check, LLP encourages Hepsiburada investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE TO SUBSCRIBE TO THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the most significant financial interest and who are also suitable and typical for the proposed investor category. The lead plaintiff chooses a lawyer to represent the lead plaintiff and the class and these lawyers, if approved by the court, are the lead or class advocates. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, fault and neglect on the part of businesses and trustees. In the end, we were successful if the bad guys pay and you get your holdings back. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (free call)
A video accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/76f6f764-7c6e-4dbe-89a9-d64b45590d4e