If you suffered losses exceeding $25,000 investing in Maison Solutions (a) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") 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, inclusive (the "Class Period")and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/MSS.
There is no cost or obligation to you.
NEW YORK, Jan. 18, 2024 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Maison Solutions Inc. ("Maison Solutions" or the "Company") (NASDAQ: MSS) and reminds investors of the March 4, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
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 about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company's vendor XHJC Holdings Inc., is a related party; (2) that the Company's CEO and related entities were alleged to have used supermarkets as a front to defraud the EB-5 visa program; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On October 5, 2023, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold 2,500,000 shares of Class A common stock at a price of $4.00 per share. The Company received net proceeds of approximately $10 million from the Offering. The proceeds from the IPO were purportedly to be used for new store acquisitions and expansion, including opening new stores and the acquisition of businesses and supermarkets that complement the business, including to acquire "90% equity interests in (a) the Alhambra Store from Ms. Grace Xu, spouse of John Xu, our chief executive officer, and (b) Dai Cheong from Mr. Xu, by paying off the SBA loans held by each entity of approximately $2.0 million and $2.4 million, respectively, as partial consideration for such acquisitions.
On December 15, 2023, Hindenburg Research published an investigation into Maison Solutions, alleging a number of "red flags" concerning potentially illegal activities and nefarious pumping/manipulation related to the Company. Hindenburg's investigation uncovered potentially undisclosed related parties, liens and litigation. Hindenburg's investigation also revealed that the Company may be "being pumped by WhatsApp chat rooms" with screenshots of chatrooms showing "trading plans." Hindenburg also reported that John Xu, the Company's Chief Executive Officer, Chairman and President, is also the President of J&C International Group ("J&C") a company which "support[s] immigration services for high-net-worth Chinese investors" and that J&C, John Xu and an alleged related entity, Hong Kong Supermarkets, are named as defendants in an ongoing litigation alleging defendants used supermarkets as a front to defraud the EB-5 visa program.
On this news, Maison Solutions' stock price fell $12.71 per share, or 83.6%, to close at $2.50 per share on December 15, 2023, thereby injuring investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Maison Solutions' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLP
