Investor Alert: Kaplan Fox Investigates Potential Securities Law Violations On Behalf Of Former Owners Of E-House China Shares
NEW YORK, April 27, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of all former owners of E-House (China) Holdings Limited ("E-House") American Depository Receipts ("ADS"), who sold E-House ADSs (i) during the period from April 15, 2016, until August 31, 2016, inclusive (the "Class Period"); or (ii) by way of, or as a result, of tendering their ADSs as part of the Merger (as defined below), regardless of when that tender occurred.
E-House describes itself as a "leading real estate services company in China." According to the complaint, in June 2015, the Company announced that it had received a buyout offer from its CEO, Defendant Xin Zhou, and another Director, Defendant Neil Nanpeng Shen. Shortly thereafter, SINA Corporation joined them in forming a "Buyer Group." On April 15, 2016, E-House executed a merger agreement with the Buyer Group, where each ADS would be bought for $6.85 per ADS (the "Merger"). ADS holder approval, however, would still be required before the Merger could close.
According to the complaint, on April 25, 2016, the Company published a preliminary proxy seeking ADS holder approval for the Merger. In an attempt to persuade ADS holders to accept the deal, the preliminary proxy allegedly contained numerous false and misleading statements and omissions. Specifically, the complaint alleges that the proxy falsely and misleadingly stated that (i) the Merger was fair and in the best interest of those investors not affiliated with the Buyer Group; (ii) there were no plans for post-Merger transactions; and (iii) the projections in the proxies were based on the best available information. According to the complaint, in truth, the Merger was not fair, there were planned post-Merger transactions, and the projections in the proxies were not the best available.
According to the complaint, contrary to statements in the proxies, Defendants set into motion post-Merger transactions, which culminated in the registration of shares for listing on the Hong Kong Stock Exchange in July 2018. This relisting reflected a valuation far higher than the consideration of $6.85 per ADS given in connection to the Merger. As a result of Defendants' wrongful scheme to take E-House private at less than fair value (with the goal of relisting it at a higher valuation), former ADS holders outside the Buyer Group have allegedly suffered harm under the federal securities laws.
If you sold or otherwise disposed of E-House ADSs during the Class Period or if you tendered ADSs into the Merger you are a member of the "Class" and may be able to seek appointment as Lead Plaintiff.
If you are a member of the proposed Class, you may move the court no later than June 9, 2020 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing [email protected] or by calling 646-315-9003.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: [email protected]
SOURCE Kaplan Fox & Kilsheimer LLP
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