MINISO GROUP HOLDING LIMITED SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
MINISO Group Holding Limited
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired MINISO Group Holding Limited (“MINISO” or the “Company”) (NYSE: MNSO) ADSs in connection with the Company’s October 2020 IPO. The lawsuit seeks to recover MINISO shareholders’ investment losses.
If you purchased ADSs in MINISO Group Holding Limited in connection with the Company’s October 2020 IPO, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
MINISO purports to be a fast-growing global value retailer which serves consumers primarily through its large network of MINISO stores.
On September 23, 2020, MINISO filed with the SEC a registration statement on Form F-1, which in combination with its subsequent amendments, are collectively referred to as the Registration Statement and issued in connection with the IPO. On October 15, 2020, MINISO filed with the SEC the final prospectus for the IPO on Form 424B4 (the “Prospectus”), which forms part of the Registration Statement. In the IPO, MINISO sold 30,400,000 ADSs at $20 per ADS.
Throughout the Registration Statement, MINISO stressed its purported business as an asset-light franchise model, its planned use of its IPO funds, and its fast-growth. However, MINISO neglected to discuss the ongoing state and model of its business, its stores, its planned use of funds, and concerns thereof.
Plaintiff alleges that Defendants’ statements in the Registration Statement were materially false and misleading when made because: (1) Defendants and other undisclosed related parties owned and controlled a much larger amount of MINISO stores than previously stated; (2) as a result, MINISO concealed its true costs; (3) the Company did not represent its true business model; (4) Defendants, including the Company and its Chairman, engaged in planned unusual and unclear transactions; (5) as a result of at least one of these transactions, the Company is at risk of breaching contracts with Chinese authorities; and (6) the Company would imminently and drastically drop its franchise fees.
On July 26, 2022, during trading hours, market researcher Blue Orca Capital published a report on the Company (the “Report”) which alleged several issues with the Company including that “MINISO Lies about its Core Business Model” because “MINISO claims that 99% of its stores in China, its key market, are operated by franchisees independent from the Company. . . . Through our investigation, . . . we found over 620 supposedly independent franchises, which, according to Chinese corporate records, are registered under the names of MINISO executives or individuals closely connected to the Company’s chairman.” The report further alleges, among other things, that IPO proceeds were siphoned by the Company’s Chairman through an illegal deal..
On this news, MINISO’s ADS price fell $1.08 per ADS, or 14.98%, to close at $6.13 per ADS on July 26, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than October 17, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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