NEW YORK, Jan. 05, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired Maison Solutions Inc. (“Maison” or the “Company”) (NASDAQ: MSS) persons and entities that purchased or otherwise acquired Maison (a) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s October 2023 initial public offering (“IPO” or the “Offering”); and/or (b) securities between October 5, 2023 and December 15, 2023, inclusive (the “Class Period”). Plaintiffs pursue claims under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that Defendants failed to disclose to investors: (1) that the Company’s vendor XHJC Holdings Inc., is a related party; (2) that the Company’s CEO and related entities were alleged to have used supermarkets as a front to defraud the EB-5 visa program; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The Complaint further alleges that on December 15, 2023, Hindenburg Research (“Hindenburg”) published a report on Maison Solutions, alleging a number of “red flags” concerning potentially illegal activities. The Complaint also alleges Hindenburg reported that Defendant John Xu, the Company’s Chief Executive Officer, is also the President of J&C International Group (“J&C”) a company which “support[s] immigration services for high-net-worth Chinese investors” and that J&C, John Xu and an alleged related entity, Hong Kong Supermarkets, allegedly used supermarkets as a front to defraud the EB-5 visa program. Further, the Complaint alleges that Hindenburg’s investigation further revealed that the Company may be “being pumped by WhatsApp chat rooms” with screenshots of chatrooms showing “trading plans.”
On this news, Maison Solutions’ stock price fell $12.71 per share, or 83.6%, to close at $2.50 per share on December 15, 2023, according to the complaint.
Investors who purchased or otherwise acquired shares of Maison should contact the Firm prior to the March 4, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
