Etsy and Investors

investors: Investors filed a proposed class action against the Brooklyn, New York-based company and its executives after an analyst said this week that more than 5 percent of about 40 million listings may be counterfeit or otherwise infringe well-known brands, according to Bloomberg. Etsy went public in April and its value rapidly climbed to more than $3 billion. Photographer: Michael Nagle/Bloomberg Etsy Inc. is facing fraud claims from investors after allegations that millions of items sold through its online crafts and specialty wares marketplace likely violate trademarks. The share price has fallen amid fears of brands increasingly cracking down on the sales of infringing merchandise, cutting into the site fees and commission, investors alleged. The executives were were personally motivated to make false statements or omissions in order to personally benefit from the sale of Etsy securities from their personal portfolios, investors alleged. Investors acquired Etsy securities in ignorance of the adverse facts concerning Etsy business and financial condition which were concealed by defendants, shareholders said in the complaint filed in Brooklyn federal court Wednesday against the company, Chief Executive Officer Chad Dickerson and Chief Financial Officer Kristina Salen. (news.financializer.com). As reported in the news.