NEW YORK -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on April 9, 2020, it filed a securities class action lawsuit, captioned Maso Capital Investments Limited v. E-House (China) Holdings Limited, No. 1:20-cv-02943 (S.D.N.Y.) (the “Action”), on behalf of its clients Maso Capital Investments Limited, Blackwell Partners LLC – Series A, and Crown Managed Accounts SPC for and on behalf of Crown/Maso Segregated Portfolio (together, the “Maso Entities”) against E-House (China) Holdings Limited (“E-House”), and certain directors, officers, and affiliates (collectively, “Defendants”).
The Action asserts claims under Sections 10(b), 13(e), 20A and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and SEC Rules 10b-5 and 13e-3 promulgated thereunder. It is brought on behalf of all former owners of E-House American Depository Receipts (“ADS”), who sold E-House ADS, and were damaged thereby: (i) during the period from April 15, 2016, until August 31, 2016, inclusive (the “Class Period”); or (ii) by way of, or as a result, of tendering their ADS as part of the Merger (as defined herein), regardless of when that tender occurred.
E-House describes itself as a “leading real estate services company in China.” In June 2015, the Company announced that it had received a buyout offer from its CEO, Defendant Zhou, and another Director, Defendant Shen. Shortly thereafter, SINA Corporation joined them in forming a “Buyer Group.” On April 15, 2016, the E-House executed a merger agreement with the Buyer Group, where each ADS would be bought for $6.85 per ADS (the “Merger”). ADS holder approval, however, would still be required before the Merger could close.
The Company published a preliminary proxy seeking ADS holder approval for the Merger on April 25, 2016. In an attempt to persuade public ADS holders to accept the deal, the preliminary proxy contained numerous false and misleading statements and omissions. Specifically, that: (i) the Merger was fair and in the best interest of those investors not affiliated with the Buyer Group; (ii) there were no plans for post-Merger transactions; and (iii) the projections in the proxies were based on the best available information. In truth, the Merger was not fair, there were planned post-Merger transactions, and the projections in the proxies were not the best available. The merger was approved based on Defendants’ false information on August 5, 2016, and closed on August 12, 2016.
According to their plans, yet contrary to their proxies, Defendants set into motion post-Merger transactions, which culminated in the registration of shares for listing on the Hong Kong Stock Exchange in July 2018. This relisting reflected a valuation far higher than the consideration of $6.85 per ADS given in connection to the Merger. As a result of Defendants’ wrongful scheme to take E-House private at less than fair value (with the goal of relisting it at a higher valuation), former ADS holders outside the Buyer Group have suffered harm under the federal securities laws.
If you sold or otherwise disposed of E-House ADS during the Class Period or if you tendered ADS into the Merger you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than June 9, 2020. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in the Action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in the Action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact David J. Schwartz, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at firstname.lastname@example.org.
The Maso Entities are represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $2 trillion. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at www.labaton.com.
You can view a copy of the complaint here.