Newegg Under Investigation, Shares Plunge 17.7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Legal Investigation Launched: The Schall Law Firm is investigating Newegg for potential violations of securities laws, which could undermine investor confidence and the company's reputation.
- Executive Detained: On January 21, 2026, Newegg disclosed that its chairman and controlling shareholder, He Zhitao, has been detained and is under investigation, raising concerns about corporate governance.
- Stock Price Plummets: Following the announcement, Newegg's shares fell by 17.7% on the same day, reflecting investor panic over uncertainty regarding the company's future and potential losses.
- Investor Rights Advocacy: The Schall Law Firm is urging affected shareholders to participate in the lawsuit, highlighting the potential legal liabilities stemming from the company's failure to disclose critical information.
Analyst Views on NEGG
About NEGG
Newegg Commerce, Inc. is a global online retailer for PC hardware, consumer electronics, gaming peripherals, home appliances, automotive and lifestyle technology. The Company also serves businesses' e-commerce needs with marketing, supply chain, and technical solutions in a single platform. It has developed an online marketplace that delivers value to consumers, brands and sellers in the technology products sector. Additionally, the Company's platforms offer a comprehensive suite of e-commerce solutions, including product listing, fulfillment, marketing, customer service and other value-added tools and services. Its core customers include both its business-to-consumer (B2C) customers and its business-to-business (B2B) customers. The Company's B2C Platforms include Newegg.com, Newegg.ca, Newegg Global and Mobile apps. NeweggBusiness.com, its B2B e-commerce platform, offers a full range of information technology, office and industrial products and solutions for various customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
