PHOENIX TREE INVESTOR ALERT: Shareholder Class Action Lawsuit Filed

BOSTON, MA / ACCESSWIRE / April 30, 2020 / Thornton Law Firm LLP announces a securities class action lawsuit has been filed on behalf of shareholders of Phoenix Tree Holdings Limited (NYSE:DNK). Investors who purchased DNK securities in connection with the IPO on January 22, 2020, are encouraged to visit https://www.tenlaw.com/cases/DNK. Investors may also contact Thornton Law Firm at shareholder@tenlaw.com, or call 617-531-3917. Investors outside the USA, including derivative investors, are encouraged to contact Thornton Law Firm to discuss their potential recovery rights.

FOR MORE INFORMATION, VISIT: https://www.tenlaw.com/cases/DNK

Interested DNK shareholders have until June 26, 2020 to apply to be a lead plaintiff. The lawsuit alleges violations of the federal securities laws, and the class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member. There is no minimum number of shares required to be a class member.

Phoenix Tree Holdings Limited is a Cayman Islands holding company that leases and manages apartments in China, which it rents to tenants under the Danke Apartment and Dream Apartment brands. It is alleged that at the time of its IPO, Phoenix generated revenue primarily from rents and service fees and that as of September 30, 2019, it operated in 13 cities in China, including Wuhan, where a portion of its 5,000-plus employees worked.

The complaint alleges that the Offering Materials connected to the company's IPO omitted the following facts: (1) Phoenix received complaints and negative press concerning its questionable business conduct before the IPO, including its misleading practice of deceptively persuading renters to procure loans whose proceeds financed the Company's business and operations; (2) that competition in the residential rental market in China dropped significantly at the time of the IPO, especially in Wuhan, the epicenter of the Coronavirus pandemic, as the Coronavirus spread throughout the very locations where Phoenix operated; (3) that Phoenix's technological capabilities could not enable the Company to surmount the complications and erosion of business due to the spread of the Coronavirus throughout China at the time of the IPO; (4) that Phoenix was competing with extremely adverse developments in China at the time of the IPO due to the Coronavirus that presented events, risks and uncertainties that were reasonably likely to materially affect Phoenix's business, operations and financial condition, including a material increase in renter complaints and negative press and the prospect that renters could not continue to pay rent and service fees under conditions then existing as of the IPO; (5) consequently, Phoenix was positioned no differently than its competitors in managing the fallout from customer complaints or adverse implications stemming from the coronavirus in China and (6) as a result, Phoenix's public statements were materially false and misleading at all relevant times.

If you are an investor that suffered losses in DNK, and wish to participate, learn more, or discuss the issues surrounding the lawsuit, please contact the Thornton Law Firm's shareholder rights team at http://www.tenlaw.com/cases/DNK, by email at shareholder@tenlaw.com, or calling 617-531-3917.

FOR MORE INFORMATION: https://www.tenlaw.com/cases/DNK

Thornton Law Firm's securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

CONTACT:

Thornton Law Firm LLP
State Street Financial Center
1 Lincoln Street
Boston, MA 02111
www.tenlaw.com/cases/DNK

SOURCE: Thornton Law Firm LLP

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