Hepsiburada investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than December 20, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi a/k/a D-MARKET Electronic Services & Trading d/b/a Hepsiburada American Depositary Receipts (ADRs) pursuant and/or traceable to the July 2021 initial public offering IPO through October 21, 2021 (the "Class Period").
Hepsiburada operates an ecommerce platform in Turkey, where it is known as the “Amazon of Turkey.” On July 1, 2021, Hepsiburada filed its prospectus on a Form 424B4, which forms part of the Registration Statement. In the IPO, Hepsiburada sold approximately 62,251,000 ADRs at a price of $12 per ADR. Hepsiburada received proceeds of approximately $783 million from the Offering. The Registration Statement touted Hepsiburada’s purported growth attributable to “meticulous execution.” The Registration Statement also touted the increase in gross merchandise value (“GMV”), which “refers to the total value of orders/products sold through [the] platform over a given period of time,” including shipping fees but excluding other service revenues and transaction fees.
The truth regarding Hepsiburada was revealed on August 26, 2021, when Hepsiburada announced its second quarter 2021 financial results (the quarter which had ended before the IPO closed) reporting that revenue grew 5.2%, reflecting “the shift in GMV mix in favor of Marketplace.” Hepsiburada also reported that earnings before interest, taxes, depreciation, and amortization, or EBITDA, was “negative TRY 188.6 million in Q2 2021 compared to positive TRY 71.1 million in Q2 2020 . . . due to lower gross contribution driven primarily by investments to fortify our position in electronics, investments to penetrate in high frequency categories as well as higher customer demand for low margin products.”
Following this news, Hepsiburada’s ADR price 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 as low as $5.30 per ADR, a nearly 56% decline from the $12 per ADR IPO price.
The complaint alleges that the Registration Statement was materially false and misleading and omitted to state that: (1) Hepsiburada suffered a sharp deceleration in operational and sales growth during second quarter 2021; (2) as a result, Hepsiburada initiated certain actions to fortify its competitive position, including investing in electronics and high frequency categories and discounting certain categories; (3) as a result of the foregoing, Hepsiburada’s revenue and GMV had declined during second quarter 2021; and (4) as a result of the foregoing, the defendants’ positive statements about Hepsiburada’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.