Maison Solutions Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Maison Solutions Inc. (“Maison” or the “Company”) (NASDAQ: MSS) securities during the period from October 5, 2023 through December 15, 2023, inclusive. Investors have until March 4, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In October 2023, Maison conducted its initial public offering (“IPO”), selling 2,500,000 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 Research reported that the Company’s Chief Executive Officer, John Xu, is also the President of J&C International Group, a company which supports immigration services for high-net-worth Chinese investors. Hindenburg Research disclosed 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 Research’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, the price of Maison shares declined by $12.71 per share, or approximately 83.56%, from $15.21 per share to close at $2.50 on December 15, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company’s vendor XHJC Holdings Inc., is a related party; (ii) the Company’s Chief Executive Officer and related entities were alleged to have used supermarkets as a front to defraud the EB-5 visa program; and (iii) 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.
In October 2023, Maison conducted its initial public offering (“IPO”), selling 2,500,000 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 Research reported that the Company’s Chief Executive Officer, John Xu, is also the President of J&C International Group, a company which supports immigration services for high-net-worth Chinese investors. Hindenburg Research disclosed 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 Research’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, the price of Maison shares declined by $12.71 per share, or approximately 83.56%, from $15.21 per share to close at $2.50 on December 15, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company’s vendor XHJC Holdings Inc., is a related party; (ii) the Company’s Chief Executive Officer and related entities were alleged to have used supermarkets as a front to defraud the EB-5 visa program; and (iii) 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.