NEW YORK, October 27, 2021--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi a/k/a D-MARKET Electronic Services & Trading d/b/a/ Hepsiburada ("Hepsiburada" or the "Company") (NASDAQ: HEPS) and other defendants, alleging violations of federal securities laws. If you purchased Hepsiburada American Depositary Receipts ("shares") since July 1, 2021 and have suffered a loss, realized or unrealized, you are encouraged to contact Scott+Scott attorney, Jonathan Zimmerman, at (844) 818-6980 or at email@example.com for more information.
Hepsiburada operates an e-commerce platform in Turkey, where it is known as the "Amazon of Turkey." On July 1, 2021, the Company held its initial public offering ("IPO") in the U.S., offering shares at a price of $12 per share.
According to the lawsuit, Hepsiburada and the other defendants made false and misleading statements to the market in connection with the IPO. Specifically, they did not disclose that (1) Hepsiburada’s operational and sales growth suffered a sharp deceleration in the second quarter of 2021; and (2) as a result, the Company attempted to fortify certain high frequency product categories and discounting others; and (3) as a result, positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 26, 2021, Hepsiburada announced its second quarter 2021 financial results (the quarter that had ended before the IPO) reporting that revenue grew 5.2%, reflecting "the shift in GMV mix in favor of Marketplace." The Company’s CEO stated on the Company’s related earnings call that there was a decline in gross contribution margin driven by "discounts given to our customers to . . . widen our selection with expanding merchant base and competitive prices in the markets by our strategic margin investments as well as discounts given to our customers for temporary marketing campaigns."
On this news, the Company’s share price fell $3.05, or 25%, to close at $8.97 per share on August 26, 2021.
By the commencement of the lawsuit on October 21, 2021, the Company’s shares were trading as low as $5.30 per share, a nearly 56% decline from the $12 IPO price.
What You Can Do
If you purchased Hepsiburada shares, and you wish to discuss this lawsuit, please contact attorney Jonathan Zimmerman at (844) 818-6980, or at firstname.lastname@example.org. The deadline for lead plaintiff motions is December 20, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006201/en/