LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) continues its investigation on behalf of Huazhu Group Limited (“Huazhu” or the “Company”) (NASDAQ: HTHT) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your Huazhu investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/huazhu-group-limited/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On September 21, 2020, Bonitas Research issued a report, alleging, among other things, that Huazhu Group “lied about the ownership of its hotel portfolio to produce fake financials.” The report also stated that Bonitas’ “fieldwork” “confirmed that Huazhu secretly supported operating costs of franchisee hotels owned by undisclosed current Huazhu employees & other undisclosed related parties (‘off-book hotels’).” Bonitas further alleged that undisclosed related party transactions were used “to artificially inflate Huazhu’s reported profits[,]” and that it “calculate[s] that Huazhu’s fake profits manifested as RMB 2 billion (US$ 300 million) of fake PP&E on its CYE’19 balance sheet.”
On this news, Huazhu Group’s American depositary share (“ADS”) price fell $1.54, or over 3%, to close at $40.48 per share on September 21, 2020, thereby injuring investors.
Then, on September 25, 2020, Huazhu announced that a special committee of its Board of Directors will investigate the allegations in the Bonitas report.
On this news, the Company’s share price fell sharply in intraday trading on September 25, 2020.
Whistleblower Notice: Persons with non-public information regarding Huazhu should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email firstname.lastname@example.org.
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