NEWTOWN, PA / ACCESSWIRE / January 16, 2023 / The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Maison Solutions Inc. (NASDAQ:MSS) (a) Class A common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company's October 2023 initial public offering ("IPO" or the "Offering"); and/or (b) securities between October 5, 2023, and December 15, 2023 (the "Class Period").
Investors who purchased Maison Solutions Inc. common stock may move the U.S. District Court for the Central District of California to appoint them as lead plaintiff, no later than March 4, 2024. Current holders of Maison Solutions stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed HERE.
Background on Maison Solutions Inc.
Headquartered in Monterey Park, California, Maison Solutions Inc. is a US-based specialty retailer that offers traditional Asian food and merchandise to consumers.
The Securities Fraud Claims
The complaint alleges that in the registration statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts regarding the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) the Company's vendor, XHJC Holdings Inc., is a related party; (ii) the Company's CEO and related entities were alleged to have used supermarkets as a front to defraud the EB-5 visa program.
On October 5, 2023, the Company sold 2.5 million shares of Class A common stock at $4/share, for net proceeds of $10 million in the IPO. The Company submitted its prospectus on Form 424B4 to the SEC as part of the Registration Statement. On December 15, 2023, Hindenburg Research published a report alleging several "red flags" about Maison, suggesting potentially illegal activities. On this news, Maison's stock price fell $12.71 per share, or 83.6 percent, to close at $2.50 per share on Friday, December 15, 2023, on unusually heavy trading volume. Subsequently, Maison Solutions stock dropped as low as $1.50 per share, a decline of over 62 percent from its $4 IPO price.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
SOURCE: Edelson Lechtzin LLP
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