Orchid Pavilion set to be sued by investors in US

Beijing time September 4 Morning News, the US law firm Robbins Arroyo, a shareholder equity lawyer, announced in Tuesday that an investor in the Orchid Pavilion (NYSE:LITB) had filed a lawsuit against the U.S. New York State Southern District Court on behalf of the company's ads (US depository shares). The accusation that the Orchid pavilion and some of its executives were in violation of the US Securities Exchange Act of 1934 from June 6, 2013 to August 19.

The indictment shows that the pavilion has made a false and misleading statement and failed to disclose information about the company's financial performance and business prospects. Specifically, the indictment accuses some of the company's executives of misrepresentation in the time period mentioned, and failed to disclose a significant decline in sales growth that began in the second quarter of 2013. In addition, the indictment alleges that some of the Orchid Pavilion executives knew that the company's second-quarter cost growth exceeded sales growth, but did not disclose. This has led to the failure of the Orchid Pavilion to achieve the financial objectives that the company maintained in the preceding period.

According to the indictment, the company announced its second-quarter results as of June 30, 2013, less than one months after August 19, 2013, the Orchid Pavilion IPO. The company achieved revenue of $72.2 million in the quarter, earning 0.05 dollars per share, below analysts ' forecasts of 75.8 million and 0.06 dollars based on the company's information. In addition, the company also announced that the third-quarter revenue is expected to be 68 million to 70 million U.S. dollars, rather than the capital market according to the company disclosed information forecast of 75.8 million U.S. dollars. Affected by the news, the Orchid Pavilion shares fell nearly 40% August 20, compared to the previous session of 7.69 U.S. dollars, the report closed at 11.58 U.S. dollars.

For investors who have invested in the Orchid pavilion and are willing to defend their shareholders ' interests, they can contact Dannell Donnachou lawyer (Darnell R Donahue), Tel: (800) 350-6003, e-mail is: ddonahue@robbinsarroyo.com. You can also fill out the shareholder information form through the website of the law firm: http://www.robbinsarroyo.com/shareholders-rights-blog/lightinthebox-holding-co-ltd/.