WILMINGTON, Del., Oct. 6, 2014 /PRNewswire/ — Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating Zhunrize Inc. ("Zhunrize" or the "Company") and its CEO Jeff Pan for potential securities fraud. (Case Number 1:14-cv-03030-RWS)
On September 22, 2014, the U.S. Securities and Exchange Commission (the "SEC") commenced a lawsuit against Zhunrize and Jeff Pan for defrauding more than 77,000 investors of more than $105 million in a massive pyramid scheme. The SEC's complaint alleges that Zhunrize, an Atlanta-based multilevel marketing company, purported to sell "memberships" to online stores through which "members" can sell merchandise. The complaint, however, alleges that Zhunrize operates as a fraudulent pyramid scheme because its commission structure is based on the continual recruitment of new members with the most lucrative returns dependent on the downline recruitment of other members through store sales irrespective of any product sales. Until more recently, Zhunrize did not disclose to its members that substantially all of its revenue (more than 98%) has come from the sale of memberships, not product sales from the online stores. A copy of the complaint is available upon request.
As a result of the foregoing news, Andrews & Springer has opened an investigation to determine whether the "memberships" offered by Zhunrize were unregistered securities, the selling of which would violate Section 12(a)(1) of the Securities Act of 1933.
If you purchased membership from Zhunrize and want to receive additional information and protect your legal rights free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/Zhunrize or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook – www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.
|
Media Contact: |
Craig J. Springer, Esq. |
|
Toll Free: 1-800-423-6013 |