Mecoxlane, the first Chinese online retailer listed in the US, received a collective action from the US law firm Sarraf Gentile on Tuesday. This is the third lawsuit Mecoxlane has encountered from the US investors following the lawsuits from Rosen Law Firm and Kahn Swick & Foti (KSF).

In the three lawsuits, Mecoxlane the plaintiffs claim that certain directors and officers were in violation of the United States Securities Act of 1933 (the Securities Act of 1933), disclosing misleading and false information in the company's IPO-related documents.

In addition, Mecoxlane and certain insiders are under suspicion of cashing out about US$129 million before the release of the Q3 financial report.

Mecoxlane has stated that the complaint over securities law violations is "groundless," and the company is prepared to "aggressively defend against the suit."

(China.org.cn December 9, 2010)