SAN DIEGO, April 28, 2020 /PRNewswire/ -- Johnson Fistel, LLP announced that a class action has commenced on behalf of purchasers of Phoenix Tree Holdings Limited ("Phoenix" or "the Company") (NYSE: DNK) American Depositary Shares ("ADSs") pursuant and/or traceable to prospectuses and registration statements issued in connection with the Company's January 22, 2020, initial public offering ("IPO").
If you wish to serve as lead plaintiff, you must move the Court no later than June 26, 2020. If you wish to discuss this action or have any questions concerning this notice, please contact Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.
Phoenix leases and manages apartments in China, which it rents to tenants under the brands Danke Apartment and Dream Apartment.
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.
On March 25, 2020, when Phoenix announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019, it told investors that it expected the coronavirus to adversely affect its financial performance for the nearly-completed first quarter of 2020. Information regarding ongoing renter complaints also reached the market after the IPO, adversely affecting the Company.
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SOURCE Johnson Fistel, LLP