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Shareholder rights law firm Johnson Fistel, LLP said on Tuesday that it’s investigating whether MINISO Group Holding Limited (NYSE: MNSO), any of its executive officers, or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors.
The investigation focus on investors’ losses and whether they may be recovered under the federal securities laws, the law firm said.
The statement came after Blue Orca on Tuesday released a short report regarding MINISO’s operations.
Blue Orca said that “MINISO Lies about its Core Business Model. MINISO’s value proposition to investors is that it allegedly operates an asset-light, high-margin independent franchise model. Supposedly, this enables the Company to expand quickly while minimizing upfront capital costs. In theory, this also allows MINISO to generate high margins without the operating expenses and complexity which drag down profitability at traditional retailers. We think that this foundational narrative is a lie.”
Additionally, Blue Orca alleged that IPO proceeds were siphoned by Chairman through a crooked headquarters deal.”