RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased MINISO Group Holding Limited. ("MINISO" or the "Company") (NYSE: MNSO) pursuant or traceable to the Company’s October 2020 initial public offering (“IPO”).
MINISO shareholders may, no later than October 17, 2022, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of MINISO and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The class action lawsuit alleges that the IPO’s Registration Statement was false and/or misleading and/or failed to disclose that: (i) defendants and other undisclosed related parties owned and controlled a much larger amount of MINISO stores than previously stated; (ii) as a result, MINISO concealed its true costs; (iii) MINISO did not represent its true business model; (iv) defendants, including MINISO and its Chairman, engaged in planned unusual and unclear transactions; (v) as a result of at least one of these transactions, MINISO is at risk of breaching contracts with PRC authorities; and (vi) MINISO would imminently and drastically drop its franchise fees.
On July 26, 2022, market researcher Blue Orca Capital published a report on MINISO, which alleged several issues with the Company, including that (i) MINISO’s stores are secretly owned by Company executives or insiders closely connected to the chairman, and (ii) overwhelming evidence shows that MINISO misleads the market about its core business. Blue Orca explained, “[o]ur suspicion is that MINISO realized early in the pre-IPO process that a brick-and-mortar retailer would be far less attractive to investors than an asset-light franchise business, so we think that [MINISO] simply lied about these stores.” Blue Orca added its belief “that the chairman siphoned hundreds of millions from the public company through opaque Caribbean jurisdictions as the middleman in a crooked headquarters deal.” Blue Orca further concluded that “[i]ndependent evidence, including archived disclosures on MINISO’s Chinese website, reports in Chinese media and interviews with former employees, indicate that MINISO is a brand in serious peril,” noting that “MINISO lowered its franchising fee by 63% over the past two years in a desperate effort to attract franchisees.” On this news, MINISO’s ADS price fell nearly 15%.
As of July 27, 2022, MINISO ADSs closed at $5.66 per ADS, representing more than a 70% decline from the $20.00 IPO price.
If you are a member of the class, you may, no later than October 17, 2022, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.