Asian Tech Press (Oct 13)-- The Goldman Sachs Group, Inc. and Morgan Stanley are reportedly being sued by shareholders of Vipshop Holdings Ltd (VIPS: NYSE), a Chinese e-commerce company, for alleged insider trading in sales of Vipshop shares during Archegos Capital Management's blowout.

The lawsuit was filed in a New York federal court by investors in Vipshop, Bloomberg reported Wednesday. And the United States District Court for the Southern District of New York heard the case, Chew King Tan v. Goldman Sachs Group Inc. and Morgan Stanley, under case number 21-cv-8413.

The class action complaint alleged that the two large Wall Street investment banking firms made several large sales of Archegos' holdings in Vipshop after secretly learning that Bill Hwang's family wealth management office might not be able to meet margin calls.

Such sales sent Vipshop's stock into "a complete tailspin," Bloomberg said, citing the investors.