US law firms initiate class action against Orchid Pavilion and some of its executives

US law firm Pomerantz Grossman Hufford Dahlstrom & Gross LLP has launched a class-action lawsuit against the Orchid Pavilion (NASDAQ:LITB) and some of its executives.

The law firm launched the lawsuit in the Southern District Court of New York, which represents all the individuals and institutions that bought the Orchid Pavilion stock from June 6 to August 19. According to the lawsuit, in accordance with the Securities Exchange Act 1934 (b) and (a) and the 10B-5 rules established by the Securities and Exchange Commission, the Orchid Pavilion and some of its executives violate the U.S. federal securities law, and therefore seek the orchid pavilion and some of its executives compensation losses.

If investors have bought the Orchid Pavilion stock during this period, they can apply to the court to become the main plaintiff in the case before October 28. An investor can obtain a copy of the indictment through Www.pomerantzlaw.com. If you wish to discuss this class action, you can contact Robert Villeraby (Robert S. Willoughby) by mail rswilloughby@pomlaw.com or by telephone 888.476.6529 (or 888.4-pomlaw). The investor who consults through the mail is best to provide the mailing address, telephone number and the number of shares bought.

Orchid Pavilion is an international online retail company, which sells goods directly to consumers through the Internet. The indictment contends that during the period from June 6 to August 19, the defendant issued a substantially erroneous and misleading statement of the company's financial performance and future prospects. In particular, it is important to note that the accused wrongly stated or failed to disclose the following adverse facts, but the defendants were in fact aware of the situation or were reckless in ignoring the situation: a the growth in the sales of the Orchid Pavilion has slowed considerably in the second quarter of 2013 as at June 30. (b) In the second quarter of 2013, the cost of the Orchid pavilion was growing faster than the revenue. (c) As a result of the above facts, the Orchid Pavilion is not able to achieve the company's expected financial performance of the market.

August 19, 2013, after the closing of the U.S. stock market, Orchid Pavilion set released the second quarter of 2013 earnings. The report said revenue for the second quarter was only $72.2 million trillion, excluding one-off projects, with a profit of $0.05, while analysts expected a profit of $0.06 per share and a revenue of 75.8 million dollars. The pavilion is also expected to have revenues of 68 million to 70 million dollars in the third quarter of 2013, compared with an average of 75.8 million dollars for analysts.

After the announcement, the pavilion's shares fell about 40% from the August 19 closing price of $19.27, and the August 20 closing to $11.58. The shares of the Orchid Pavilion were once as high as $23.38 in trading on August 14.

Pomerantz Grossman Hufford Dahlstrom & Gross LLP has offices in New York, Chicago, Florida and San Diego and is a leading law firm in the field of corporate, securities and antitrust litigation.