Labaton Keller Sucharow secured a $4,903,900 settlement in a securities class action lawsuit against Missfresh Limited
The operative complaint in the Action is the Amended Class Action Complaint for Violations of the Securities Act of 1933, filed on December 28, 2022 (the Complaint) and alleges violations of Sections 11, 12 (a)(2), and 15 of the Securities Act of 1933 (the Securities Act) relating to Missfresh’s initial public offering of 24,150,000 American Depositary Shares (ADSs),including the Underwriter Defendants’ overallotment, for $13.00 per ADS to the investing public on or about June 25, 2021 (the IPO or Offering). Defendants are Missfresh; defendant Zheng Xu; Cogency Global Inc. (Cogency) and Colleen A. De Vries (together with Cogency, the Cogency Defendants); and the Underwriter Defendants and, together with Missfresh, Zheng Xu, and the Cogency Defendants, the Settling Defendants).
On January 27, 2023, Defendants Missfresh, Cogency, and De Vries filed a motion to dismiss the Complaint and the Underwriter Defendants filed a joinder to the motion. Plaintiffs opposed the motion to dismiss and the joinder on February 10, 2023.
On September 12, 2023, the Court issued a “bottom-line” order denying the motion to dismiss as to Plaintiffs’ claims predicated upon the misstated revenue and sales of online products reported in the Offering Documents, but granting the motion to dismiss in all other respects.
An initial mediation with Plaintiffs, Defendant Missfresh and Defendant Xu was held in October 2023. The mediation did not result in an agreement between the parties. On November 20, 2023, through continued arm’s-length efforts by the parties to reach a resolution, Plaintiffs, Defendant Missfresh, and Defendant Xu accepted the Mediator’s recommendation and reached an agreement in principle to settle the claims against all of the Defendants. However, the agreement in principle did not result in a settlement agreement and the parties continued their discussions in an effort to resolve the Action.
Litigation continued, including Plaintiffs motion for class certification and further motion to dismiss briefing filed by Defendant Li. Between November 28, 2023 and April 23, 2024, Plaintiffs and Settling Defendants continued to negotiate at arm’s-length a resolution of the Action, with the assistance of the Mediator. On April 23, 2024, the parties informed the Court that they had reached an agreement in principle to settle all claims in the Action and had signed a term sheet reflecting that agreement in principle. The Plaintiffs and Settling Defendants executed a Stipulation of Settlement on June 12, 2024.
The case is Chen v. Missfresh Limited, et al., Case No. 22-cv-09836-JSR in the United States District Court for the Southern District of New York. The Action is assigned to the Honorable Jed. S. Rakoff, United States District Judge. Labaton Keller Sucharow represents Maso Capital Investments Limited.
Submit Claim Form
If you purchased or otherwise acquired Missfresh Limited (Missfresh or the Company) ADSs pursuant and/or traceable to the Offering Documents issued in connection with the ADSs initial public offering in June 2021 (IPO) and were damaged thereby, you may be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by October 5, 2024.
Settlement Hearing
The Settlement Hearing was held on October 10, 2024, at 4:30p.m., in Courtroom 14B at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007.
If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 888 219-6877, or contact the Claims Administrator, at (866) 274- 4004.
Additional information about the Settlement can also be found at www.MissfreshSecuritiesSettlement.com.
