Shareholders of LightInTheBox claim firm inflated its stock value

A class-action lawsuit alleging that online retailer LightInTheBox artificially inflated the value of its shares on the New York Stock Exchange before they plunged on a disappointing revenue outlook is "without merit," the company said, and it promised to "vigorously defend itself".

The plaintiffs in the suit, filed in the US district court for the Southern District of New York, are shareholders who purchased the Beijing company's stock from June 6 to Aug 19, a period that includes the company's June 6 initial public offering, law firm Federman & Sherwood said in a press release. The statement from the Oklahoma City, Oklahoma, firm was released Tuesday after the US stock market closed.