Overview

A class action lawsuit, captioned Kinally v. GigaCloud Technology Inc., et al., has been filed against GigaCloud Technology, Inc. (“GigaCloud” or the “Company”) (NASDAQ: GCT), certain of its top current and/or former executive officers and Aegis Capital Corp., alleging violations of federal securities laws.  The lawsuit seeks to represent purchasers or acquirers of GigaCloud’s Class A ordinary shares pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s August 2022 initial public offering (“IPO”) and/or securities between August 15, 2022 – September 27, 2023, inclusive (the “Class Period”). 

GigaCloud operates as a holding company.  The Company, through its subsidiaries, offers a business-to-business e-commerce platform for global trade services of heavy and large products, which connects manufacturers with resellers to execute cross-border transactions.  GigaCloud Technology serves customers worldwide. 

The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.

Specifically, Defendants failed to disclose to investors: (i) that the Company’’s business is a fraction of what it publicly claims, as evidenced by staffing and activity levels at its warehouses; (ii) that the Company overstated its last-mile operations; (iii) that the Company engaged in undisclosed related party transactions; (iv) that, as a result, the Company’s financial results were overstated; (v) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The GigaCloud lawsuit alleges that on August 2022, GigaCloud conducted its IPO, selling 3,381,000 Class A ordinary shares at $12.25 per share for net proceeds of approximately $34.2 million.  On September 28, 2023, before the market opened, Culper Research published a report (the “Report”) alleging “numerous glaring flaws”” in GigaCloud’s public reporting.  For example, the Report stated that while GigaCloud “claims to run 14 U.S. warehouses,” the Company “discloses just 73 employees in the entire U.S., implying just 5 employees per warehouse.”

The Report also alleged that “GigaCloud’s marketing materials utilize photoshopped stock photos to portray itself as a highly efficient, growing operation,” but that Culper Research’s investigators visited some of the Company’s warehouses and discovered little activity.  Further, the Report alleges that Culper Research uncovered “numerous entities which are neither named subsidiaries nor disclosed as GCT related parties” whose conduct at the very least “suggests undisclosed related party issues.”

As alleged in the GigaCloud lawsuit, on this news, the Company’s share price fell $1.78, or 18%, to close at $7.69 per share on September 28, 2023, on unusually heavy trading volume.  By the commencement of this action, GigaCloud’s shares have closed as low as $4.27 per share, a 65% decline from the $12.25 per share IPO price.

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If you purchased GigaCloud Technology Inc’sClass A ordinary shares traceable to the Registration Statement and Prospectus issued in connection with the Company’s August 2022 IPO and/or securities during the Class Period and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.  You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to submit an application with the Court to serve as a lead plaintiff in the GigaCloud lawsuit is December 4, 2023.