NEW YORK–(BUSINESS WIRE)–#Action–Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Missfresh Limited (“Missfresh” or the “Company”) (NASDAQ: MF) in the United States District Court for the Eastern District of New York on behalf of all persons and entities who purchased or otherwise acquired Missfresh securities pursuant to the Company’s June 25, 2021 IPO (the “Class Period”). Investors have until September 12, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Missfresh purports to be an innovator and leader in China’s neighborhood retail industry which invented the Distributed Mini Warehouse (DMW) model to operate an integrated online-and-offline on-demand retail business focusing on offering fresh produce and fast-moving consumer goods (FMCGs).
On or about June 8, 2021, Missfresh filed with the SEC a Registration Statement on Form F-1, which in combination with a subsequent amendment on Form F-1/A and filed pursuant to Rule 424(b)(4), would be used for the IPO.
On June 23, 2021, Missfresh filed with the SEC its final prospectus for the IPO on Form 424B4 (the “Prospectus”), which forms part of the Registration Statement. In the IPO, Missfresh sold approximately 21 million American Depositary Shares (“ADSs”) at $13.00 per ADS.
On April 29, 2022, after trading hours, Missfresh filed with the SEC a Notification of Late Filing on Form 12b-25 which announced, among other things, that the independent Audit Committee of the Company’s board of directors, with the assistance of professional advisors, “[wa]s in the process of conducting an internal review of certain matters, including those relating to transactions between the Company and certain third-party enterprises.” On this news, Missfresh ADSs fell 13% to close at $0.448 per ADS on May 2, 2021.
Then, on May 24, 2022, Missfresh disclosed that the Company was unable to file its 2021 Annual Report by the extended deadline, “primarily because the Company is unable to complete the audit of the financial statements of the Company for the fiscal year ended December 31, 2021”. On this news, Missfresh’s ADSs fell $0.018 per share, or 9.7%, over the following two trading days, to close at $0.167 per ADS on May 26, 2022.
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 disclosed, among other things, that the Company’s review “identified certain transactions . . . that exhibit 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” and that consequently, “certain revenue associated with those reporting periods in 2021 may have been inaccurately recorded in the Company’s financial statements.”
Since the IPO, the price of Missfresh’s ADSs has fallen over 97%, closing at $0.3075 per ADS on July 6, 2022.
The class action alleges that Defendants’ statements in the Registration Statement were materially false and misleading when made because: (1) Missfresh provided false financial figures in its Registration Statement; (2) Missfresh would need to amend its financial figures; (3) Missfresh, among other things, had lesser net revenues for the quarter ended March 31, 2021; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times and negligently prepared.
If you purchased or otherwise acquired Missfresh shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker or Melissa Fortunato by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.