A lawsuit was filed on behalf of investors in MINISO Group Holding Limited (NYSE:MNSO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/30/2022 -- An investor, who purchased shares of MINISO Group Holding Limited (NYSE: MNSO), filed a lawsuit in the U.S. over alleged Securities Laws violations by MINISO Group Holding Limited in connection with MINISO's October 2020 initial public offering (the "IPO").
Investors who purchased shares of MINISO Group Holding Limited (NYSE: MNSO) have certain options and for certain investors are short and strict deadlines running. Deadline: October 17, 2022. NYSE: MNSO investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
China based MINISO Group Holding Limited, an investment holding company, engages in the retail and wholesale of lifestyle products in China, Asia, the Americas, and Europe.
MINISO Group Holding Limited raised about $656 million in its US initial public offering ("IPO") in October 2020 at a IPO price of $20 per ADS. .
On July 26, 2022, during trading hours, market analyst Blue Orca Capital published a report regarding MINISO Group Holding Limited which alleges 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[,]" and "MINISO Admitted in Chinese Media that 40% of Stores Directly Owned." The report further alleges that "IPO Proceeds Siphoned by Chairman through Crooked Headquarters Deal." Finally, the report alleges that MINISO is a "Retailer In Decline: Shrinking Revenues, Falling Franchise Fees and Store Closures[,]" due in part to "Franchise Fees Dropped by 63%, Indicating Lagging Interest."
Shares of MINISO Group Holding Limited (NYSE: MNSO) declined to as low as $5.41 per share on July 27, 2022.
The plaintiff claims that the Registration Statement featured false and/or misleading statements and/or failed to disclose that defendants and other undisclosed related parties owned and controlled a much larger amount of MINISO stores than previously stated, that as a result, MINISO concealed its true costs, that the Company did not represent its true business model, that defendants, including the Company and its Chairman, engaged in planned unusual and unclear transactions, that as a result of at least one of these transactions, the Company is at risk of breaching contracts with Chinese authorities, that the Company would imminently and drastically drop its franchise fees, and that as a result, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Those who purchased shares of MINISO Group Holding Limited (NYSE: MNSO) have certain options and should contact the Shareholders Foundation.
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