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Chinese courier ZTO sued for "untrue statements" in $1.4 billion U.S. IPO

A logo of ZTO Express is seen at their branch in Beijing, China October 27, 2016.

Jason Lee

SHANGHAI (Reuters) - Chinese courier ZTO Express and the underwriters of its New York stock market listing have been sued by a U.S. pension fund that alleges the firm exaggerated its profit margins to lure investors into its $1.4 billion initial public offering.

Morgan Stanley and Goldman Sachs Group Inc, which spearheaded ZTO's IPO, are named in the class-action suit filed in Alabama state court by the city of Birmingham's pension fund which says that they failed to do adequate due diligence.

ZTO's listing was the largest U.S. listing in 2016 and was the biggest by a Chinese company since the $25 billion IPO of e-commerce giant Alibaba Group Holding Ltd in 2014.

Shares in Shanghai-based ZTO closed on Thursday at $15.68, about 20 percent below its IPO price of $19.50.

"We believe the claims are without merit and...


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