The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Missfresh Limited (MF) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Missfresh Limited (“Missfresh” or the “Company”) (NASDAQ: MF) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2021 initial public offering (“IPO” or the “Offering”). Missfresh investors have until September 12, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In June 2021, Missfresh held its IPO, selling 21 million American Depository Shares (“ADSs”) at $13 per ADS.

On April 29, 2022, Missfresh disclosed that it could not timely file its fiscal 2021 annual report because it was conducting “an internal review of certain matters, including those relating to transactions between the Company and certain third-party enterprises.”

On this news, Missfresh’s stock fell 13%, to close at $0.448 per ADS on May 2, 2022, thereby injuring investors.

Then, on July 1, 2022, after the market closed. Missfresh announced that, based on substantial completion of the internal review, certain revenue reported during fiscal 2021 “may have been inaccurately recorded.” Specifically, the review identified “questionable transactions” carried out by the Next-Day Delivery Business Unit in 2021, including “undisclosed relationships between suppliers and customers, different customers or suppliers sharing the same contact information, and/or lack of supporting logistics information.”

Since the IPO, Missfresh’s ADSs have traded as low as $0.3075, representing a 97% decline from the IPO price.

The complaint filed in this class action alleges that 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 that: (1) Missfresh provided false financial figures in its Registration Statement; (2) Missfresh would need to amend its financial figures; (3) Missfresh, among other things, had lesser net revenues for the quarter ended March 31, 2021; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Missfresh securities during the Class Period, you may move the Court no later than September 12, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you purchased Missfresh securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.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.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Missfresh Limited (MF) Investors