U.S. Law Firms to Investigate JD.com for Disclosure Failure โCaixin Global
What happened: Three US-based law firms have announced investigations on behalf of JD.comโs shareholders looking into whether the company issued misleading statements or failed to disclose information about the arrest of its CEO Richard Liu on rape charges. JD hasnโt filed anything regarding the case to the US Securities and Exchange Commission.
Why itโs important: Class action lawsuits against listed companies are not uncommon in the US. Last month the three firms which are now investigating JDโRosen, Schall, and Pomerantzโ announced investigations along with three other law firms into the newly-listed e-commerce platform Pinduoduo over fake products. JDโs shares have plunged 16% during Tuesday and Wednesday reaching a 19-month low after Liuโs arrest. Its US shares closed at $26.30 on Wednesday. After its arrest on August 31, Liu was released without bail and charges and is currently in China.
