LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Phoenix Tree Holdings Limited ("Phoenix" or the "Company") (NASDAQ: DNK) American Depositary Shares (“ADS” or “shares”) pursuant and/or traceable to the Registration Statement issued in connection with the Company’s January 22, 2020 initial public offering (“IPO”). Phoenix investors have until June 26, 2020 to file a lead plaintiff motion.
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On or about January 17, 2020, the Company sold 9.6 million shares of stock in its initial public stock offering (“IPO”), at $13.50 a share raising $130 million in new capital.
On March 25, 2020, Phoenix announced its financial results for fourth quarter and full year 2019 and disclosed that it expected the coronavirus to adversely affect its financial performance for the nearly-completed first quarter of 2020.
Since the IPO, the Company’s shares have traded as low as $6.59, which is about 51% below the IPO price.
The complaint alleges that the Registration Statement was false and/or misleading because it failed to disclose: (a) that Phoenix had received customer complaints and negative press regarding questionable business conduct before the IPO, including its widespread and notorious practice of deceptively inducing renters to procure loans whose proceeds financed the Company’s business and operations; (b) that competition in the residential rental market in China had suffered at the time of the IPO as the coronavirus ravaged the very locations where Phoenix primarily operated, including Wuhan; (c) that Phoenix’s technological capabilities were unable to enable the Company to overcome the complications and erosion of business resulting from the spread of the coronavirus throughout China at the time of the IPO; and (d) that, as a result of the foregoing, Phoenix was positioned no differently than its competitors in managing the fallout from customer complaints or adverse implications stemming from the coronavirus in China.
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If you purchased Phoenix securities during the Class Period, you may move the Court no later than June 26, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Phoenix securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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