GigaCloud Technology

 Kurta Law is investigating brokers who recommended shares of GigaCloud Technology Inc. to their customers. These investments were very high risk and financial professionals may have violated securities rules and regulations when recommending these shares.  

• Regulation Best Interest requires that brokers exercise reasonable care and skill when they recommend investments, which should rule out recommending overly risky investments.   
• Under FINRA Rule 2020, brokers also have an obligation to not omit material information when they describe an investment. They are also not allowed to misrepresent an investment in order to persuade their customers to invest.  

If you believe you have a case for a securities attorney, contact (877) 600-0098 or email info@kurtalawfirm.com for a free case evaluation.  

What is GigaCloud Technology?  

According to the prospectus, GigaCloud Technology offers B2B ecommerce solutions for large parcel merchandise.  

The Offering  

The prospectus dated August 17, 2022, announced that GigaCloud Technology would offer 2,940,000 Class A ordinary shares. The initial public offering price of Class A shares is $12.25 per share. 

Risks Related to This Offering  

GigaCloud Technology has a long list of risks disclosed in its prospectus. Brokers either knew or should have known about these risks. Below are just some of the risks that GigaCloud Technology disclosed to its potential investors.  

System Interruptions 

Performance failures of the AI, data analytics tools, or infrastructure could affect the company’s ability to make money.  

Legal, Regulatory, Political, and Economic Risks  

GigaCloud Technology operates warehouses in North America, Europe, and Asia. It is costly to develop international operations and they may not be profitable on a sustained basis. New government regulations and/or business licensing or certification requirements could affect its ability to do business. 

Third-Party Relationships  

GigaCloud Technology relies on relationships with third-party platforms, such as Rakuten, Amazon, and Walmart. GigaCloud may not be able to maintain these critical relationships for a variety of reasons.  

New Products May Not Be Successful  

GigaCloud Technology’s success depends to some extent on its ability to expand its service offerings by launching new products.  

New Capital  

GigaCloud Technology may require additional cash to fund future growth. The company’s attempts to secure additional capital may not be successful.  

Competition 

E-commerce is a competitive arena. GigaCloud Technology has a variety of competitors, including some with longer operating histories, greater brand recognition, larger fulfillment infrastructures, and greater technical capabilities. 

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

Kurta Law Can Help  

Our securities attorneys have excellent track records representing investors who have suffered losses as a result of broker misconduct. Kurta Law does not collect a fee unless we win your case. Contact us today for more information: (877) 600-0098 or info@kurtalawfirm.com.