Shein has denied allegations of modern slavery and human trafficking in its supply chain and has stated it is working to improve conditions. However, investors could face losses if these allegations are proven true. Under the Financial Services and Markets Act 2000, shareholders can seek recourse if a listed company makes false statements that lead to financial loss.
Badge Of Shame?
Human rights groups have criticized Shein’s potential London IPO due to its labor practices. Stop Uyghur Genocide, a U.K.-based campaign group, has teamed up with Leigh Day to urge the Financial Conduct Authority to block the IPO, citing allegations of modern slavery involving Muslim Turkish ethnic minorities in Xinjiang, China.
Amnesty International has also called on the LSE and U.K. authorities to halt the listing until Shein proves its commitment to global human rights standards. “Rewarding Shein’s current methods via a flotation would be a badge of shame for the London Stock Exchange,” said Dominique Muller, a researcher at Amnesty International.
