DNK June 26 Deadline Looming in the Class Action Lawsuit Against Phoenix Tree Holdings Limited (DNK)

Wed 20th May 2020 | Posted by GPMfeeds, on General

LOS ANGELES, May 19, 2020 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming June 26, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of Phoenix Tree Holdings Limited (“Phoenix” or the “Company”) (NYSE: DNK) American Depositary Shares (“ADS” or “shares”) pursuant and/or traceable to the Registration Statement issued in connection with the Company’s January 22, 2020 initial public offering (“IPO”).

If you suffered a loss on your Phoenix investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-801-2829, via email shareholders@glancylaw.com or visit our website at www.glancylaw.com to learn more about your rights.  

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.

If you purchased or otherwise acquired Phoenix ADS pursuant and/or traceable to the IPO, you may move the Court no later than June 26, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-801-2829, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.  If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-801-2829
shareholders@glancylaw.com
www.glancylaw.com

This is a blog post about the DNK case.

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