NEW YORK, Sept. 25, 2020 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Huazhu Group Limited ("Huazhu" or the "Company") (NASDAQ: HTHT). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Huazhu and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On September 21, 2020, the investment analyst Bonitas Research ("Bonitas") issued a report on Huazhu, asserting that the Company had "lied about the ownership of its hotel portfolio to produce fake financials." The Bonitas report cited "fieldwork" that "confirmed that Huazhu secretly supported operating costs of franchisee hotels owned by undisclosed current Huazhu employees & other undisclosed related parties." Bonitas further asserted that "Huazhu concealed operating expenses using undisclosed related party transactions to artificially inflate Huazhu's reported profits" and that it "calculate[s] that Huazhu's fake profits manifested as RMB 2 billion (US$ 300 million) of fake PP&E on its CYE'19 balance sheet."
On this news, Huazhu's American depositary share ("ADS") price fell $1.54 per share, or 3.66%, to close at $40.48 per ADS on September 21, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP