News

Advanced Search

Securities Investigation: MINISO Group Holding LTD.

DATE: August 25, 2022

MINISO GROUP HOLDING LIMITED Company News: Berger Montague Investigates Securities Fraud Allegations Against MINISO Group Holding Limited (NYSE: MNSO); Lead Plaintiff Deadline is October 17, 2022.

PHILADELPHIA, August 25, 2022Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities MINISO Group Holding Limited (“MINISO” or the “Company”) (NYSE: MNSO) between October 12, 2020 and August 17, 2022 (the “Class Period”).

If you purchased the securities of MINISO during the Class Period, would like to discuss Berger Montague’s investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875-3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080 or visit: https://investigations.bergermontague.com/miniso-group-holding-limited/

According to a recently filed lawsuit, on July 26, 2022, market researcher Blue Orca Capital published a report which raised several fundamental issues with MINISO, including that “contrary to [MINISO]’s claims, many MINISO stores are secretly owned by [MINISO] executives or insiders closely connected to the chairman” and “[u]ltimately, we believe that there is overwhelming evidence that MINISO misleads the market about its core business.”  As Blue Orca explained, “[o]ur suspicion is that MINISO realized early in the pre-IPO process that a brick-and-mortar retailer would be far less attractive to investors than an asset-light franchise business, so we think that [MINISO] simply lied about these stores.”

Blue Orca added that “Chinese corporate filings also indicate, in our view, that the chairman siphoned hundreds of millions from the public company through opaque Caribbean jurisdictions as the middleman in a crooked headquarters deal.”  Blue Orca further concluded that “[i]ndependent evidence, including archived disclosures on MINISO’s Chinese website, reports in Chinese media and interviews with former employees, indicate that MINISO is a brand in serious peril,” noting that “MINISO lowered its franchising fee by 63% over the past two years in a desperate effort to attract franchisees.”  On this news, MINISO’s ADS price fell nearly 15%.

As of July 27, 2022, MINISO ADSs closed at $5.66 per ADS, representing more than a 70% decline from the $20.00 IPO price.

Whistleblowers: Anyone with non-public information regarding MINISO is encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.

Request A Free Consultation