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Phoenix Tree Holdings Limited

Company NamePhoenix Tree Holdings Limited
Stock SymbolDNK
Lead Plaintiff Motion DeadlineJune 26, 2020

On or about January 17, 2020, the Company sold 9.6 million shares of stock in its initial public stock offering (“IPO”), at $13.50 a share raising $130 million in new capital. 

On March 25, 2020, Phoenix announced its financial results for fourth quarter and full year 2019 and disclosed that it expected the coronavirus to adversely affect its financial performance for the nearly-completed first quarter of 2020. 

Since the IPO, the Company’s shares have traded as low as $6.59, which is about 51% below the IPO price. 

The complaint alleges that the Registration Statement was false and/or misleading because it failed to disclose: (a) that Phoenix had received customer complaints and negative press regarding questionable business conduct before the IPO, including its widespread and notorious practice of deceptively inducing renters to procure loans whose proceeds financed the Company’s business and operations; (b) that competition in the residential rental market in China had suffered at the time of the IPO as the coronavirus ravaged the very locations where Phoenix primarily operated, including Wuhan; (c) that Phoenix’s technological capabilities were unable to enable the Company to overcome the complications and erosion of business resulting from the spread of the coronavirus throughout China at the time of the IPO; and (d) that, as a result of the foregoing, Phoenix was positioned no differently than its competitors in managing the fallout from customer complaints or adverse implications stemming from the coronavirus in China.

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Shares Purchased

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Shares Sold

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