Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of MINISO Group Holding Limited (NYSE: MNSO) publicly traded securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with MINISO’s October 15, 2020 initial public offering (the “IPO”) have until October 17, 2022 to seek appointment as lead plaintiff in the MINISO class action lawsuit. Captioned Ashraf v. MINISO Group Holding Limited, No. 22-cv-05815 (C.D. Cal.), the MINISO class action lawsuit charges MINISO, certain of its top executives and directors, its representative in the United States, and the IPO’s underwriters with violations of the Securities Act of 1933.
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CASE ALLEGATIONS: Headquartered in the People’s Republic of China (“PRC”), MINISO purports to be a fast-growing global value retailer which serves consumers primarily through its large network of MINISO stores. On October 15, 2020, defendants held the IPO, issuing approximately 30.4 million American Depositary Shares (“ADSs”) to the investing public at $20.00 per ADS, pursuant to the Registration Statement.
The MINISO class action lawsuit alleges that the IPO’s Registration Statement was false and/or misleading and/or failed to disclose that: (i) defendants and other undisclosed related parties owned and controlled a much larger amount of MINISO stores than previously stated; (ii) as a result, MINISO concealed its true costs; (iii) MINISO did not represent its true business model; (iv) defendants, including MINISO and its Chairman, engaged in planned unusual and unclear transactions; (v) as a result of at least one of these transactions, MINISO is at risk of breaching contracts with PRC authorities; and (vi) MINISO would imminently and drastically drop its franchise fees.
On July 26, 2022, market researcher Blue Orca Capital published a report on MINISO which alleged several issues with MINISO, including that “contrary to [MINISO]’s claims, many MINISO stores are secretly owned by [MINISO] executives or insiders closely connected to the chairman” and “[u]ltimately, we believe that there is overwhelming evidence that MINISO misleads the market about its core business.” As Blue Orca explained, “[o]ur suspicion is that MINISO realized early in the pre-IPO process that a brick-and-mortar retailer would be far less attractive to investors than an asset-light franchise business, so we think that [MINISO] simply lied about these stores.” Blue Orca added that “Chinese corporate filings also indicate, in our view, that the chairman siphoned hundreds of millions from the public company through opaque Caribbean jurisdictions as the middleman in a crooked headquarters deal.” Blue Orca further concluded that “[i]ndependent evidence, including archived disclosures on MINISO’s Chinese website, reports in Chinese media and interviews with former employees, indicate that MINISO is a brand in serious peril,” noting that “MINISO lowered its franchising fee by 63% over the past two years in a desperate effort to attract franchisees.” On this news, MINISO’s ADS price fell nearly 15%.
As of July 27, 2022, MINISO ADSs closed at $5.66 per ADS, representing more than a 70% decline from the $20.00 IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser or acquirer of MINISO publicly traded securities pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the MINISO 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 MINISO class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the MINISO class action lawsuit. An investor’s ability to share in any potential future recovery of the MINISO 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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J.C. Sanchez, 800-449-4900