IWA-Forest Industry Pension Plan v. D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi a/k/a D-MARKET Electronic Services & Trading d/b/a/ Hepsiburada

USDC – Southern District of New York

Class Period: July 1, 2021 – november 23, 2021

Attorneys:

Frederic S. Fox

FFox@kaplanfox.com

Donald R. Hall

DHall@kaplanfox.com

Jeffrey P. Campisi

JCampisi@kaplanfox.com

Pamela Mayer

PMayer@kaplanfox.com

• Complaint
• Settlement Notice

On October 21, 2021, a complaint was filed against D-MARKET Elektronik Hizmetler ve Ticaret Anonim Şirketi. On February 4, 2022, Kaplan Fox filed an amended complaint on behalf of its client IWA-Forest Industry Pension Plan (IWAF) in the United States District Court for the Southern District of New York seeking to recover the losses IWAF incurred as a result of negligence and breaches of fiduciary and contractual duties by D-Market and related defendants.

CASE SUMMARY

The Complaint alleges that the Registration Statement was materially false and misleading and omitted to state: (1) that the Company suffered a sharp deceleration in revenue and GMV growth during Q2 2021, the quarter ended June 30, 2021 before the IPO; (2) that, as a result, the Company initiated a number of cash burning and margin reducing actions to counteract these very negative trends, including strategic margin investments, discounts to customers for marketing campaigns, and significantly increased advertising expense for growth acceleration; (3) that, as a result of the Company’s implementation of these actions intended to counteract the very negative growth trends, the Company’s unit economics and profitability materially and sharply declined before the IPO as evidenced by declines in gross contribution margin and EBITDA in Q2 2021; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s KPIs, business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

The case was settled on August 1, 2023.

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