Yatsen Holding Limited Class Complaint Update: Robbins LLP Recalled
SAN DIEGO, Oct. 4, 2022 (GLOBE NEWSWIRE) —
The class: Law Firm Shareholder Rights Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities that purchased Yatsen Holding Limited YSG American Depository Shares (ADS) between November 19, 2020 and March 10, 2022 for violating the Securities Exchange Act of 1934. The lawsuit also seeks damages on behalf of individuals or entities that Yatsen ADS purchased pursuant to the Company’s offering documents or acquired in connection with its initial public offering (“IPO”). Yatsen is a China-based holding company engaged in the manufacture and sale of cosmetic and skin care products.
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What is it about in this case: Yatsen Holding Limited (YSG) has misled investors about the financial health of its cosmetics brands
According to the lawsuit, during the class-action period, the defendants misled investors into believing that Yatsen’s two largest and most historically significant brands, Perfect Diary and Little Ondine, were thriving, causing Yatsen’s “healthy” revenue growth at the time of the IPO and IPO Quarter after quarter thereafter, progress was made. In truth, however, cosmetics and skincare sales of Perfect Diary and Little Ondine products were declining in the period leading up to (and including) the time of the IPO and continued to decline throughout 2021.
The truth began to emerge on August 26, 2021 during the 2Q21 analyst call. Despite touting the “constant” and “healthy” performance of Perfect Diary and Little Ondine, the defendants admitted that Yatsen’s business with Perfect Diary was (and had) deteriorated, forcing Yatsen to “refocus and also spend more resources to continue the growth trend of [its] Major Brands.” Following the news, Yasten’s stock price fell 17.64% to close at $4.81 per share.
On November 17, 2021, Yatsen’s results for the third quarter of 2021 reached the market. In spite of…
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