SOURCE: Brower Piven, A Professional Corporation

December 10, 2010 15:28 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in Mecox Lane Limited to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the February 1, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - December 10, 2010) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Mecox Lane Limited ("Mecox" or the "Company") (NASDAQ: MCOX) pursuant to the Company's October 2010 Initial Public Offering ("IPO") of 11,742,857 American Depositary Shares, each representing seven ordinary shares of the Company, priced at $11.00 per ADS.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than February 1, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Act of 1933 by virtue of the Company's failure to disclose in the Registration Statement and Prospectus issued in connection with the IPO that defendants each failed to conduct an adequate due diligence investigation into the Company prior to the IPO, and they also each failed to reveal at the time the IPO closed (well after the end of the third quarter of 2010, the period ended September 30, 2010) that the Company was not proceeding according to plan and that Mecox's gross margins had been adversely impacted by increased costs and expenses which would make it impossible for Mecox to achieve its projected results sponsored and/or endorsed by defendants prior to and at the time of the IPO. According to the complaint, after, on November 29, 2010, Mecox revealed that problems which existed at the time of the IPO would result in disappointing results for the third quarter of 2010 from a significant increase in expenses, the value of Mecox shares declined significantly.

If you have suffered a net loss for all transactions in Mecox Lane Limited pursuant to the Company's October 2010 Initial Public Offering, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 50 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact