U.S. Law Firms to Investigate JD.com for Disclosure Failure
CEO Liu Qiangdong isn’t the only one in legal trouble at Chinese e-commerce giant JD.com Inc. The company itself is now facing scrutiny in the U.S.
Three American law firms, Rosen, Schall and Pomerantz, said that they would investigate on behalf of shareholders whether JD.com issued misleading statements or failed to disclose information related to Liu’s arrest in the U.S. last weekend.
Shares of Nasdaq-listed JD.com plunged nearly 6% on Tuesday, the first trading day after Liu — also known as Richard Liu — was arrested on suspicion of rape in the U.S. He was later released, and his case is pending further investigation.
JD.com hasn’t filed anything regarding the case to the U.S. Securities and Exchange Commission. The company’s spokesperson said on Chinese social networking site Weibo Sunday that U.S. police had not found any evidence against Liu — though the police investigation is still underway.
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