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Shareholder Class Action Filed Against ZTO Express (Cayman) Inc

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired ZTO Express (Cayman) Inc. (“ZTO”) (NYSE: ZTO) publicly traded securities pursuant and/or traceable to the company’s initial public offering on or about October 27, 2016 (the “IPO”).

ZTO investors may receive additional information about the case by clicking the link "Join this Class Action" above.  

           
According to the complaint, ZTO, through its subsidiaries, provides express delivery and other value-added logistics services in China. It offers delivery services for e-commerce merchants, traditional merchants, and other express service users, as well as through business partners. 

On September 30, 2016, ZTO filed a registration statement on Form F-1 with the SEC. On October 24, 2016, ZTO filed its final amendment to the Registration Statement, which registered over 82 million ZTO shares for public sale.  The Registration Statement contained a preliminary prospectus. The final prospectus was filed on October 28, 2016 (the “Prospectus”). The Registration Statement and the Prospectus are collectively referred to herein as the “Registration Statement.” 

The SEC declared the Registration Statement effective on October 26, 2016. ZTO priced the IPO at $19.50 per share and filed the final Prospectus for the IPO, which forms part of the Registration Statement. Through the IPO, the defendants issued and sold over 72 million ADSs, generating over $1.36 billion for defendants.

The complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that ZTO was improperly inflating its stated profit margins by keeping certain low-margin segments of its business out of its financial statements. ZTO used a system of “network partners” to handle lower-margin pickup and delivery services, while maintaining ownership of core hub operations. By keeping the “network partners” businesses off its own books, the company was able to exaggerate its profit margins to investors.

As of the date of the filing of the complaint, ZTO shares traded at approximately $13.25.

If you are a member of the class described above, you may no later than October 16, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.  


A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter.  If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. 

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 
Or by e-mail at info@ktmc.com

Please complete this form and list your purchase and sale transaction(s) for ZTO Express (Cayman) Inc. (“ZTO”) (NYSE: ZTO) publicly traded securities pursuant and/or traceable to the company’s initial public offering on or about October 27, 2016 (the “IPO”):

Information Sheet
* Denotes required field
Acquisitions
Date Aquired
Number of Shares Acquired
Acquisition Price Per Share
Sales
Date Sold
Number of Shares Sold
Selling Price Per Share
Did you purchase shares of ZTO Express (Cayman) Inc prior to the class period?
Are you a current or former employee of ZTO Express (Cayman) Inc?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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