Shareholder rights law firm Robbins LLP announces that a class action was filed on behalf of purchasers of D-MARKET Electronic Services & Trading d/b/a Hepsiburada (Nasdaq: HEPS) American Depository Receipts ("ADRs") issued in connection with the Company's July 2021 initial public offering ("IPO"). The complaint alleges violations of the Securities Act of 1933. Hepsiburada is an online e-commerce company in Turkey where it is known as the "Amazon of Turkey."

If you have questions regarding Hepsiburda's alleged misconduct, click here.

D-MARKET Electronic Services & Trading d/b/a Hepsiburada (HEPS) Misstated its Business and Financial Prospects

According to the complaint, on July 1, 2021, Hepsiburada conducted its IPO, selling 62.251 million ADRs at $12 per ADR for more than $783 million in gross proceeds. However, the Registration Statement filed in support of the IPO failed to disclose that Hepsiburada suffered a sharp deceleration in operational and sales growth during second quarter 2021. Specifically, the Company attempted to fortify its competitive position by investing in electronics and high frequency categories and discounting certain categories. As a result, Hepsiburada's revenue and GMV declined during second quarter 2021.

On August 26, 2021, Hepsiburada announced its 2Q21 financials results, including a just 5.2% year-over-year growth in 2Q21, over 90% below the most recent growth highlighted in the Registration Statement, reflecting "the shift in GMV mix in favor of Marketplace." The Company also reported EBITDA was "negative TRY 188.6 million in Q2 2021 compared to positive TRY 71.1 million in Q2 2020 … due to lower gross contribution driven primarily by investments to fortify our position in electronics, investments to penetrate in high frequency categories as well as higher customer demand for low margin products." On this news, the Company's ADR price fell $3.05, or 25%, to close at $8.97 per ADR on August 26, 2021.

At the time the complaint was filed, the stock was trading at $5.30 per ADR, a more than 55% decline from the price at which Hepsiburada sold its ADRs to investors.

If you own shares of D-MARKET Electronic Services & Trading d/b/a Hepsiburada (HEPS) you have until December 10, 2021, to ask the court to appoint you as lead plaintiff for the class.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas

(800) 350-6003

adumas@robbinsllp.com

Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against D-MARKET Electronic Services & Trading d/b/a Hepsiburada settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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