BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of Maison Solutions Inc. (“Maison” or the “Company”) (NASDAQ: MSS) investors who purchased (a) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s October 2023 initial public offering (“IPO” or the “Offering”); and/or (b) securities between October 5, 2023 and December 15, 2023, inclusive (the “Class Period”). Maison investors have until March 4, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Maison investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
In October 2023, Maison conducted its IPO, selling 2,500,00 shares of Class A common stock at $4.00 per share.
On December 15, 2023, Hindenburg Research published a report about Maison, alleging a number of “red flags” concerning potentially illegal activities. Hindenburg reported that the Company’s Chief Executive Officer, John Xu, is also the President of J&C International Group (“J&C”) a company which “support[s] immigration services for high-net-worth Chinese investors” and that J&C, Xu, and an alleged related entity, Hong Kong Supermarkets, allegedly used supermarkets as a front to defraud the EB-5 visa program. Hindenburg’s investigation further revealed that the Company may be “being pumped by WhatsApp chat rooms” with screenshots of chatrooms showing “trading plans.”
On this news, Maison’s stock price fell $12.71 per share, or 83.6%, to close at $2.50 per share on Friday, December 15, 2023, on unusually heavy trading volume. By the commencement of this action, Maison stock has traded as low as $1.50 per share, a more than 62% decline from the $4 per share IPO price.
The complaint filed in this class action alleges that the Registration Statement and throughout the Class Period, 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: (1) that the Company’s vendor XHJC Holdings Inc., is a related party; (2) that the Company’s CEO and related entities were alleged to have used supermarkets as a front to defraud the EB-5 visa program; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased Maison 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com
