NEW YORK, Oct. 12, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Huazhu Group Limited (NASDAQ: HTHT) on behalf of Huazhu stockholders. Our investigation concerns whether Huazhu has violated the federal securities laws and/or engaged in other unlawful business practices.
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On September 21, 2020, Bonitas Research issued a report, alleging, among other things, that Huazhu “lied about the ownership of its hotel portfolio to produce fake financials.” The report also stated that Bonitas’ “fieldwork” “confirmed that Huazhu secretly supported operating costs of franchisee hotels owned by undisclosed current Huazhu employees & other undisclosed related parties (‘off-book hotels’).” Bonitas further alleged that undisclosed related party transactions were used “to artificially inflate Huazhu’s reported profits[,]” and that it “calculate[s] that Huazhu’s fake profits manifested as RMB 2 billion (US$ 300 million) of fake PP&E on its CYE’19 balance sheet.”
On this news, Huazhu’s American depositary share (“ADS”) price fell $1.54, or over 3%, to close at $40.48 per share on September 21, 2020.
If you purchased or otherwise acquired Huazhu shares and suffered a loss, have information, 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 Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.