NEW YORK–(BUSINESS WIRE)–Rosen Law Firm, a global investor rights law firm, continues its investigation of potential securities claims on behalf of shareholders of Huazhu Group Limited (NASDAQ: HTHT) resulting from allegations that Huazhu Group may have issued materially misleading business information to the investing public.
On September 21, 2020, the investment analyst Bonitas Research issued a report on the Company which alleged that Huazhu Group “lied about the ownership of its hotel portfolio to produce fake financials.” The report also stated that Bonitas’ “fieldwork” “confirmed that Huazhu secretly supported operating costs of franchisee hotels owned by undisclosed current Huazhu employees & other undisclosed related parties (‘off-book hotels’).” Bonitas further asserted that it “believe[s] that Huazhu concealed operating expenses using undisclosed related party transactions to artificially inflate Huazhu’s reported profits[,]” and that it “calculate[s] that Huazhu’s fake profits manifested as RMB 2 billion (US$ 300 million) of fake PP&E on its CYE’19 balance sheet.”
On this news, Huazhu Group’s American depositary share (“ADS”) price fell $1.54, or over 3.6%, to close at $40.48 per ADS on September 21, 2020, thereby injuring investors.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Huazhu Group’s investors. If you purchased ADSs of Huazhu Group, please visit the firm’s website at http://www.rosenlegal.com/cases-register-1949.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at firstname.lastname@example.org or email@example.com.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm’s attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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