NEW YORK, Jan. 8, 2011 (GLOBE NEWSWIRE) -- Shareholders of Mecox Lane Limited ("MCOX" or the "Company") ("Mecox" or the "Company") (Nasdaq:MCOX) are reminded of the securities class action lawsuit filed against Mecox and certain of its directors and officers. The class action (Civil Action No.: 11-cv-034) pending in the Southern District of New York is on behalf of investors who acquired Mecox American Depositary Shares ("ADS") traceable to the Company's October 26, 2010 initial public offering (the "IPO"). The lawsuit asserts claims arising under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933.
If you are a shareholder who purchased Mecox securities, you have until February 1, 2011 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
In connection with the Company's IPO, Defendants failed to disclose at the time of the IPO that: (1) it was already foreseeable that Mecox would not be able to achieve results for the third quarter of 2010 that were in line with either historical growth trends or defendants' guidance; (2) the Company had already experienced disappointing results for the third quarter of 2010, including a significant decline in gross margins that were adversely impacted by increased costs and expenses; (3) defendants had not conducted an adequate due diligence investigation into Mecox; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On November 29, 2010, Mecox disclosed disappointing financial results for the third quarter of 2010, including a decline in gross margins of almost 400 basis points year-over-year, a 20.4% increase in Selling, General and Administrative expenses, and a 19.8% increase in Operating expenses. These increases were driven, in part, by an 11.6% increase in marketing expenses and a 40.2% increase in competition and benefits expenses. As a result of the disclosures, Mecox ADS declined $6.73 or more than 57% over two trading days.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP rrboyle@pomlaw.com 888-476-6529 (ext. 237)