Did you lose money on investments in MINISO Group Holding? If so, please visit MINISO Group Holding Limited Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com to discuss your rights.
NEW YORK, Oct. 11, 2022 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or otherwise acquired the publicly-traded securities of MINISO Group Holding Limited (“MINISO” or the “Company”) (NYSE: MNSO) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with MINISO’s October 2020 initial public offering (the “IPO” or “Offering”). The lawsuit was filed in the United States District Court for the Central District of California and alleges violations of the Securities Exchange Act of 1933.
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.
If you purchased or otherwise acquired MINISO securities, and/or would like to discuss your legal rights and options please visit MINISO Group Holding Limited Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
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.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
