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GCT.US
id: 841

GigaCloud (GCT) Investor Settlement

Late claims are being considered for compensation, subject to approval.
$2,750,000
Cash Settlement
S.D. New York
Court
1:23-cv-10645
Case number
08/18/2022
Class period Start
09/27/2023
Class period End
10/06/2025
Claim deadline
GigaCloud ($GCT) has reached a settlement with investors over claims that it misled them about the authenticity of its marketplace revenues and the use of artificial intelligence in its operations.

Outline
In 2022, GigaCloud presented itself as a tech-driven B2B e-commerce platform leveraging artificial intelligence to optimize logistics and operations. However, reports later revealed that a significant portion of its reported revenue originated from undisclosed related-party transactions connected to insiders. Following these disclosures, $GCT fell nearly 19%, and GigaCloud faced a lawsuit from investors.

Timeline

  • August 18, 2022 – GigaCloud completed its IPO and began trading on NASDAQ under the ticker $GCT.
  • September 28, 2023 – Culper Research published a report alleging that GigaCloud generated substantial revenue from undisclosed related parties. $GCT fell 18.8%.
  • October 4, 2023 – Investors filed a lawsuit, claiming GigaCloud misrepresented its customer base and revenue authenticity.
  • May 2025 – GigaCloud agreed to a settlement.

Background

GigaCloud operates a global B2B e-commerce platform specializing in large-parcel merchandise like furniture and fitness equipment. The company marketed itself as a logistics innovator powered by artificial intelligence, reporting rapid growth and high customer engagement.

However, in late 2023, research from Culper and Grizzly revealed that over half of GigaCloud’s revenue stemmed from related-party transactions involving companies controlled by insiders. These affiliations were not disclosed in regulatory filings, raising concerns about the integrity of its financial reporting.

Following the reports, $GCT dropped nearly 19%, and investors filed suit alleging GigaCloud misled the public about the independence of its revenues and exaggerated its technological capabilities.

What Can Investors Expect Now?

GigaCloud ($GCT) has reached a settlement with investors over claims that it misled them about the authenticity of its marketplace revenues and the use of artificial intelligence in its operations.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management, 
Shareholder, 
Investment Bank, 
Service Provider
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.0573
Filing date
10/04/2023
Lead Plaintiff Deadline
12/04/2023
Plaintiffs
Thomas J. Kinnally
Attorneys
Glancy Prongay & Murray
Defendants
Larry Wu ; Iman Schrock; David Lau
Judge
Jesse M. Furman
Administrator
JND Legal Administration
Court hearing date
10/09/2025
Exclusion deadline
09/18/2025
Objection deadline
09/18/2025
Attorney fee
$712,500
Trades matching type
FIFO

Frequently Asked Questions

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