SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Missfresh Limited (NASDAQ: MF) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Missfresh’s June 2021 initial public offering (the “IPO”) that suffered compensable damages have until September 12, 2022 to seek appointment as lead plaintiff in the Missfresh class action lawsuit. The Missfresh class action lawsuit – captioned Chen v. Missfresh Limited, No. 22-cv-04065 (E.D.N.Y.) – charges Missfresh, certain of its top executives and directors, as well as the IPO’s underwriters with violations of the Securities Act of 1933.
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CASE ALLEGATIONS: Missfresh purports to be an innovator and leader in China’s neighborhood retail industry which invented the Distributed Mini Warehouse model to operate an integrated online-and-offline on-demand retail business focusing on offering fresh produce and fast-moving consumer goods. Pursuant to its IPO, Missfresh sold approximately 21 million of its American Depositary Shares (“ADSs”) at a price of $13.00 per ADS.
The Missfresh class action lawsuit alleges that the IPO’s Registration Statement contained false and/or misleading statements and/or failed to disclose that: (i) Missfresh provided false financial figures in its Registration Statement; (ii) Missfresh would need to amend its financial figures; and (iii) Missfresh, among other things, had lesser net revenues for the quarter ended March 31, 2021.
On April 29, 2022, Missfresh filed with the U.S. Securities and Exchange Commission (“SEC”) a Notification of Late Filing on Form 12b-25 which announced that Missfresh would not be able 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 given that “[t]he independent Audit Committee of the [Missfresh]’s board of directors, with the assistance of professional advisors, is in the process of conducting an internal review of certain matters, including those relating to transactions between [Missfresh] and certain third-party enterprises.” Missfresh further disclosed that “[t]he Audit Committee is working with its advisors to complete the review in a timely manner.” On this news, the price of Missfresh ADSs fell by 13%.
Then, on May 24, 2022, Missfresh issued a press release entitled “Missfresh Announces Receipt of Nasdaq Notification Regarding Late Filing of Form 20-F” which stated “the Listing Qualifications Department of The Nasdaq Stock Market Inc. (‘Nasdaq’), indicating that [Missfresh] is not in compliance with the requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) since [Missfresh] did not timely file its annual report on Form 20-F for the fiscal year ended December 31, 2021.” Missfresh further revealed that it was not able to file the 2021 Form 20-F by the prescribed deadline “primarily because [Missfresh] is unable to complete the audit of the financial statements of [Missfresh] for the fiscal year ended December 31, 2021.” On this news, the price of Missfresh ADSs fell by more than 9% over the next two trading days.
Finally, on July 1, 2022, Missfresh issued a press release entitled “Missfresh Announces the Substantial Completion of the Audit Committee-Led Independent Internal Review” which revealed that the review “identified certain transactions carried out by the Next-Day Delivery BU in 2021 that exhibited characteristics of questionable transactions, such as undisclosed relationships between suppliers and customers, different customers or suppliers sharing the same contact information, and/or lack of supporting logistics information.” Missfresh thus concluded that “[a]s a result, certain revenue associated with these reporting periods in 2021 may have been inaccurately recorded in [Missfresh]’s financial statements.”
As of July 6, 2022, Missfresh ADSs closed at $0.3075, representing a 97% decline from the IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser of Missfresh securities pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the Missfresh class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Missfresh class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Missfresh class action lawsuit. An investor’s ability to share in any potential future recovery of the Missfresh class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2021 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering nearly $1.9 billion for investors last year, more than triple the amount recovered by any other securities plaintiffs’ firm. Please visit the following page for more information:
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