NEW YORK, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against NIO, Inc. (NYSE: NIO), Discover Financial Services (NYSE: DFS), MINISO Group Holding Limited (NYSE: MNSO), and Phathom Pharmaceuticals, Inc. (NASDAQ: PHAT). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
NIO, Inc. (NYSE: NIO)
On May 5, 2022, NIO provided an update on its status under the Holding Foreign Companies Accountable Act ("HFCAA") amid the increased focus on Chinese companies listed on U.S exchanges. NIO stated that it is aware that the Company has been provisionally identified by the U.S. Securities and Exchange Commission under the HFCAA and understands that it may be a result of the auditor used for its filing of the annual report on Form 20-F. NIO further stated that it has been actively exploring possible solutions to protect the interest of its stakeholders, including a secondary listing of its Class A ordinary shares on the Hong Kong Stock Exchange.
On this news, NIO's American depositary receipt ("ADR") price fell $2.75 per ADR, or 15.17%, to close at $15.38 per ADR on May 5, 2022.
For more information on the NIO investigation go to: https://bespc.com/cases/NIO
Discover Financial Services (NYSE: DFS)
Discover is a digital banking and payment services company offering customers credit card loans, private student loans, personal loans, home loans, and deposit products.
In 2015, the U.S. Consumer Financial Protection Bureau (“CFPB”) issued a consent order against Discover based on the CFPB’s finding that Discover engaged in illegal debt collection practices and that Discover misstated the minimum amounts due on billing statements as well as tax information consumers needed to get federal income tax benefits. In 2020, the CFPB issued a consent order against Discover based on its findings that Discover violated the prior CFPB order, the Electronic Fund Transfer Act, and the Consumer Financial Protection Act of 2010.
On July 20, 2022, Discover revealed that it was “suspending until further notice its existing share repurchase program because of an internal investigation relating to its student loan servicing practices and related compliance matters.” Discover further disclosed that “[t]he investigation is ongoing and is being conducted by a board-appointed independent special committee.”
On this news, the price of Discover stock fell by $8.49 per share, or 7.8%%, to close at $100.00 per share on July 21, 2022.
For more information on the Discover investigation go to: https://bespc.com/cases/DFS
MINISO Group Holding Limited (NYSE: MNSO)
The investigation concerns whether MINISO and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On or around October 15, 2020, MINISO conducted its initial public offering (“IPO”) of 30.4 million American Depositary Shares (“ADSs”), priced at $20.00 per ADS.
On July 26, 2022, Blue Orca Capital (“Blue Orca”) published a short report concerning MINISO. Citing a “seven-month investigation of Chinese corporate records and store level data,” the Blue Orca report alleged, among other things, that “hundreds of [MINISO] stores are secretly owned and operated by MINISO executives or individuals closely connected to the chairman” and that “Chinese corporate filings also indicate . . . that the chairman siphoned hundreds of millions from the public company through opaque Caribbean jurisdictions as the middleman in a crooked headquarters deal.”
On this news, the price of MINISO’s ADS declined intraday to $6.13, $0.87 lower than the July 26, 2022 opening price and $13.87 below the IPO price.
For more information on the MINISO investigation go to: https://bespc.com/cases/MNSO
Phathom Pharmaceuticals, Inc. (NASDAQ: PHAT)
On August 2, 2022, before market hours, Phathom issued a press release entitled “Phathom Pharmaceuticals Reports Second Quarter 2022 Financial Results and Provides Business Updates” which announced that “we detected trace levels of a nitrosamine in vonoprazan drug product in our post-approval testing as we prepared for commercial launch.” Further, the press release announced that “[t]he Company is working with the FDA and plans to obtain approval of and implement an additional test method, specification, including a proposed acceptable intake limit, and additional controls to address this impurity prior to releasing our first vonoprazan-based products to the market.” Finally, the Company announced that “[t]hese additional activities will result in a delay of the planned VOQUEZNA DUAL PAK and VOQUEZNA TRIPLE PAK product launches.”
On this news, Phathom’s stock price fell $2.61 per share, or 28%, to close at $6.46 per share on August 2, 2022.
For more information on the Phathom investigation go to: https://bespc.com/cases/PHAT
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
