NEW YORK, NY / ACCESSWIRE / July 17, 2017 / Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at ZTO Express (Cayman) Inc. (“ZTO” or the “Company”) (NYSE: ZTO).
The investigation focuses on whether the Company and its executives violated federal securities laws. Specifically, on October 27, 2016, ZTO conducted a public offering of 72,100,000 American Depository Shares (“ADSs”) at a price of $19.50 per share, raising $1.4 billion (the “Offering”). ZTO’s registration statement and prospectus filed with the U.S. Securities and Exchange Commission in support of the Offering presented a highly positive picture of ZTO’s business, performance, prospects, and acreage while omitting crucial realities. The Company emphasized its strong operating leverage, superior profitability, and rapid growth. However, ZTO failed to disclose that it was improperly inflating its stated profit margins far above industry norms by keeping low-margin segments of its business out of its financial statements.
Since the Offering, the price of ZTO’s ADSs has declined significantly.
If you invested in ZTO ADSs and would like to discuss your legal rights, click here: www.faruqilaw.com/ZTO. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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SOURCE: Faruqi & Faruqi, LLP