NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Phoenix Tree Holdings Limited ("Phoenix Tree" or the "Company") of the June 26, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Phoenix Tree American Depositary Shares ("ADSs") pursuant and/or traceable to the Company's January 17, 2020 initial public offering ("IPO") and would like to discuss your legal rights, click here: www.faruqilaw.com/DNK. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Phoenix Tree ADSs pursuant and/or traceable to the Company's January 17, 2020 IPO. The case, Wandel v. Gao et al., No. 20-cv-03259 was filed on April 24, 2020, and has been assigned to Judge Louis L. Stanton.
The lawsuit focuses on whether the Company and its executives violated federal securities laws. The complaint alleges that the Offering Materials issued in connection with the IPO omitted or otherwise misrepresented the nature and level of renter complaints the Company had received before and as of the IPO, as well as the demand in the Chinese residential rental market and the Company's exposure to significant adverse developments resulting from the onset of the coronavirus in China - particularly in Wuhan - at the time of the IPO. After the IPO, reports emerged indicating that Phoenix was experiencing ongoing problems due to the coronavirus, which was causing financial and other harm to tenants.
Since Phoenix Tree's IPO, the Company's share price has declined from its IPO price of $13.50 by approximately 50%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Phoenix Tree's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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