NEW YORK--(BUSINESS WIRE)--Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Phoenix Tree Holdings Limited ("Phoenix” or the "Company") (NYSE: DNK) and certain of its officers, on behalf of shareholders who purchased Phoenix American Depositary Shares ("ADSs") pursuant and/or traceable to prospectuses and registration statements, as amended (together, "Offering Materials"), issued in connection with the Company's January 22, 2020 initial public offering ("IPO"). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/dnk.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.
The complaint alleges that the Offering Materials issued connected to the Company’s IPO were materially false and/or misleading and/or omitted or misrepresented the following facts: (1) Phoenix received complaints and negative press concerning its questionable business conduct before the IPO, including its practice of persuading renters to procure loans whose proceeds financed the Company’s business and operations; (2) competition in the residential rental market in China had dropped due to coronavirus at the time of the IPO, specifically in Wuhan, the epicenter of the coronavirus pandemic, where Phoenix primarily operated; (3) 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; (4) Phoenix was competing with extremely adverse developments in China at the time of the IPO due to the coronavirus that presented events, risks and uncertainties that were reasonably likely to materially affect Phoenix’s business, operations and financial condition, including a material increase in renter complaints and negative press and the prospect that renters could not continue to pay rent and service fees under conditions then existing as of the IPO; (5) consequently, Phoenix was positioned no differently than its competitors in managing the fallout from customer complaints or adverse implications stemming from the coronavirus in China; and (6) as a result, Phoenix’s public statements were materially false and misleading at all relevant times.
If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/dnk or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Phoenix you have until June 26, 2020 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.