SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that the Yatsen class action lawsuit seeks to represent purchasers of Yatsen Holding Limited (NYSE: YSG): (a) American Depository Shares (“ADSs”) between November 19, 2020 and March 10, 2022, inclusive (the “Class Period”) and who were damaged thereby; and/or (b) ADSs pursuant or traceable to Yatsen’s Registration Statement on Form F-1 and related prospectus on Form 424B4 (collectively, the “Offering Documents”) issued in connection with Yatsen’s November 2020 initial public offering (the “IPO”). Captioned Maeshiro v. Yatsen Holding Limited, No. 22-cv-08165 (S.D.N.Y.), the Yatsen class action lawsuit charges Yatsen, certain of its top executive officers and directors, the IPO’s underwriter, and others with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Yatsen class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-yatsen-holding-limited-class-action-lawsuit-ysg.html
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. Lead plaintiff motions for the Yatsen class action lawsuit must be filed with the court no later than November 22, 2022.
CASE ALLEGATIONS: Yatsen is a China-based holding company engaged in the production and sale of cosmetics and skincare products. On November 19, 2020, Yatsen filed the final prospectus for Yatsen’s IPO, making available approximately 58.75 million ADSs to the investing public at $10.50 per ADS.
The Yatsen class action lawsuit alleges that defendants misled investors into believing that Yatsen’s two largest and historically most significant brands, Perfect Diary and Little Ondine, were thriving, thereby driving Yatsen’s “healthy” top-line growth at the time of its IPO and quarter after quarter thereafter. In truth, however, cosmetic and skincare sales of Perfect Diary and Little Ondine products were declining in the period leading up to (and including at the time of) the IPO, and continued to decline throughout 2021.
On August 26, 2021, during the second quarter of 2021 analyst call, Yatsen’s Chairman, Founder, and CEO, defendant Jinfeng Huang, admitted that Yatsen’s Perfect Diary business was (and had been) deteriorating, requiring Yatsen to “refocus and also to devote more resources to continue the growth trend of [Yatsen’s] main brands.” According to Huang, Yatsen had “move[d] too fast to reallocate [Yatsen’s] talent into the skincare BU.” On August 26, 2021, the price of Yatsen ADSs declined more than 17%.
Then, on or about November 18, 2021, defendants acknowledged witnessing a “soft industry environment for color cosmetics.” On this news, the price of Yatsen ADSs fell an additional 17.9%.
Finally, on March 10, 2022, Yatsen released its fourth quarter and full year financial results for the period ended December 31, 2021, revealing that its disappointing financial results were not solely due to issues with Little Ondine but, rather, Perfect Diary as well. In commenting on the “challenging quarter,” Huang blamed “soft consumer demand and intense competition in the color cosmetics segment” for why total net revenues for the fourth quarter decreased 22.1% and gross sales for the fourth quarter decreased 17.2%. Huang later conceded that Yatsen’s disappointing results were the result of a deceleration in sales of its leading brands. On this news, the price of Yatsen ADSs fell another 39.5%, further damaging investors.
By the commencement of the Yatsen class action lawsuit, the price of Yatsen ADSs had fallen by more than 96% from the $10.50 IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Yatsen ADSs during the Class Period and who were damaged thereby and/or purchased Yatsen ADSs pursuant or traceable to the Offering Documents issued in connection with the IPO to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Yatsen class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Yatsen class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Yatsen class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
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Contacts
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
[email protected]