MISSFRESH LIMITED SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Missfresh Limited (“Missfresh” or the “Company”) (NASDAQ: MF) ADSs in connection with the Company’s June 2021 IPO. The lawsuit seeks to recover Missfresh shareholders’ investment losses.
If you purchased ADSs in Missfresh Limited in connection with the Company’s June 2021 IPO, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Missfresh purports to be an innovator and leader in China’s neighborhood retail industry which invented the Distributed Mini Warehouse (DMW) model to operate an integrated online-and-offline on-demand retail business focusing on offering fresh produce and fast-moving consumer goods (FMCGs).
On or about June 8, 2021, Missfresh filed with the SEC a Registration Statement on Form F-1, which in combination with a subsequent amendment on Form F-1/A and filed pursuant to Rule 424(b)(4), would be used for the IPO.
On June 23, 2021, Missfresh filed with the SEC its final prospectus for the IPO on Form 424B4 (the “Prospectus”), which forms part of the Registration Statement. In the IPO, Missfresh sold approximately 21 million American Depositary Shares (“ADSs”) at $13.00 per ADS.
Plaintiff alleges that Defendants’ statements in the Registration Statement were materially false and misleading when made because: (1) Missfresh provided false financial figures in its Registration Statement; (2) Missfresh would need to amend its financial figures; (3) Missfresh, among other things, had lesser net revenues for the quarter ended March 31, 2021; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times and negligently prepared.
On April 29, 2022, after trading hours, Missfresh filed with the SEC a Notification of Late Filing on Form 12b-25 which announced, among other things, that the independent Audit Committee of the Company’s board of directors, with the assistance of professional advisors, “[wa]s in the process of conducting an internal review of certain matters, including those relating to transactions between the Company and certain third-party enterprises.” On this news, Missfresh ADSs fell 13% to close at $0.448 per ADS on May 2, 2021.
Then, on May 24, 2022, Missfresh disclosed that the Company was unable to file its 2021 Annual Report by the extended deadline, “primarily because the Company is unable to complete the audit of the financial statements of the Company for the fiscal year ended December 31, 2021”. On this news, Missfresh’s ADSs fell $0.018 per share, or 9.7%, over the following two trading days, to close at $0.167 per ADS on May 26, 2022.
Finally, on July 1, 2022, Missfresh issued a press release entitled “Missfresh Announces the Substantial Completion of the Audit Committee-Led Independent Internal Review” which disclosed, among other things, that the Company’s review “identified certain transactions . . . that exhibit characteristics of questionable transactions, such as undisclosed relationships between suppliers and customers, different customers or suppliers sharing the same contact information, and/or lack of supporting logistics information” and that consequently, “certain revenue associated with those reporting periods in 2021 may have been inaccurately recorded in the Company’s financial statements.”
Since the IPO, the price of Missfresh’s ADSs has fallen over 97%, closing at $0.3075 per ADS on July 6, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than September 12, 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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