SAN FRANCISCO, CA / ACCESSWIRE / September 29, 2022 / Hagens Berman urges MINISO Group Holdings Limited (NYSE:MNSO) investors who suffered significant losses to submit your losses now. A securities class action related to MINISO's Oct. 15, 2020, initial public offering of approximately 30.4 million American Depositary Shares at $20/share has been filed.
Relevant Period: Oct. 15, 2020 - July 26, 2021
Lead Plaintiff Deadline: Oct. 17, 2022
Contact An Attorney Now: [email protected]
MINISO Group Holdings Limited (NYSE:MNSO) Securities Class Action:
The litigation focuses on MINISO's repeated claims, enabling it to complete its IPO, that its business model was a high margin, asset-light network of thousands of independent franchise stores who shoulder capital expenditures and operating expenses, and on its claims it would use IPO net proceeds to expand its business operations.
The complaint alleges that the IPO offering documents misleadingly stated or failed to disclose: (1) MINISO and undisclosed related parties owned and controlled many more MINISO stores than previously stated; (2) as a result, MINISO concealed its true costs; (3) MINISO mischaracterized its true business model; (4) MINISO and its Chairman engaged in planned unusual and unclear transactions; (5) as the result of at least one of these transactions, MINISO risks breaching contracts with Chinese authorities; and, (6) MINISO would imminently and drastically drop its franchise fees.
On July 26, 2022, analyst Blue Orca Capital published a scathing report concluding in part that MINISO owns and operates about 40% of MINISO stores. Hundreds of stores are registered to company executives or persons connected to its Chairman and, "MINISO's chairman, Ye Guofu, bilked hundreds of millions of freshly raised capital from public investors through a series of crooked transactions revolving around the purchase and construction of a massive headquarters in China."
As of the date of the filing of the action, MINISO's ADSs trade almost 70% below the IPO price.
"We're focused on investors' losses and proving MINISO misrepresented its asset-light business model and how it would use of its IPO proceeds," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in MINISO and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding MINISO should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP