SAN DIEGO–(BUSINESS WIRE)–$MF #classaction—The Class: Shareholder rights law firm Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons who purchased or otherwise acquired Missfresh Limited (NASDAQ: MF) securities pursuant to the Company’s June 2021 initial public offering («IPO»), for violations of the Securities Act of 1933. Missfresh purports to be an innovator and leader in China’s neighborhood retail industry, which invested the Distributed Mini Warehouse (DMW) model to operate an integrated online-and-offline on-demand retail business focusing on offering fresh produce and fast-moving consumer goods.
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What is this Case About: Missfresh Limited (MF) Provided False Financial Figures in its Registration Statement in Support of its IPO.
According to the complaint, defendants held the Company’s IPO in June 2021, offering shares to the investing public at $13.00 per ADS.
On April 29, 2022, Missfresh filed with the SEC a Notification of Late Filing on Form 12b-25, which announced that it would be unable to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2021 by the prescribed filing deadline of April 30, 2022. Additionally, an independent Audit Committee of the Company’s board of directors is conducting an internal review, including matters relating to transactions between the Company and certain third-party enterprises. On this news, Mssfresh ADSs fell 23% to close at $0.448 per ADS on May 2, 2022.
Then, on May 24, 2022, Missfresh announced it had received a notification letter dated May 19, 2022, from the Listing Qualifications of NASDAQ indicating the Company is not in compliance with listing requirements. On this news, Missfresh ADSs fell 9% over two trading days, to close at $0.167 per ADS on May 26, 2022.
On July 1, 2022, Missfresh revealed it had substantially completed its review and «[a]s a result, certain revenue associated with these reporting periods in 2021 may have been inaccurately recorded in the Company’s financial statements.» The employees responsible for the questionable transactions were notified and given notices of resignation.
As of July 6, 2022, Missfresh’s ADSs closed at $0.3075, representing a 97% decline from the IPO price.
Next Steps: If you acquired shares of Missfresh Limited securities pursuant to the Company’s IPO, you have until September 12, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Missfresh Limited settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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