ROSEN, A TOP RANKED FIRM, Continues to Investigate Securities Claims Against Huazhu Group Limited - HTHT

Rhea-AI Summary

Rosen Law Firm is investigating potential securities claims for shareholders of Huazhu Group Limited (NASDAQ: HTHT) due to allegations of misleading business information. A report by Bonitas Research accuses Huazhu of inflating profits by hiding operating costs of franchisee hotels and using undisclosed related party transactions, suggesting a fake profit of RMB 2 billion (US$ 300 million). Following this news, Huazhu's ADS price dropped by over 3.6% to close at $40.48 on September 21, 2020. A class action lawsuit is being prepared by Rosen Law Firm for affected investors.

Positive

• None.

Negative

• Allegations of misleading business information could impact investor confidence.
• Potentially inflated profits by RMB 2 billion (US$ 300 million) raise concerns over financial integrity.
• Stock price fell 3.6% to $40.48 following the negative report.

NEW YORK, Nov. 17, 2020 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of Huazhu Group Limited (NASDAQ: HTHT) resulting from allegations that Huazhu may have issued materially misleading business information to the investing public.

On September 21, 2020, Bonitas Research issued a report on the Company which alleged 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 asserted that it "believe[s] that Huazhu concealed operating expenses using undisclosed related party transactions 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 3.6%, to close at $40.48 per ADS on September 21, 2020, thereby injuring investors.

Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Huazhu's investors. If you purchased ADSs of Huazhu, please visit the firm's website at http://www.rosenlegal.com/cases-register-1949.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.

Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm's attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

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Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40^th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      lrosen@rosenlegal.com
      pkim@rosenlegal.com
      cases@rosenlegal.com
      www.rosenlegal.com

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SOURCE Rosen Law Firm, P.A.

FAQ

What allegations are against Huazhu Group Limited (HTHT)?

Rosen Law Firm is investigating allegations that Huazhu issued materially misleading business information, particularly regarding inflated profits and undisclosed related party transactions.

How much did Huazhu's stock price drop after the allegations?

Huazhu's American Depositary Share price fell by over 3.6%, closing at $40.48 on September 21, 2020.

What is the purpose of the investigation by Rosen Law Firm?

The investigation aims to pursue potential securities claims on behalf of Huazhu shareholders due to misleading financial information.

What is the class action lawsuit regarding Huazhu Group (HTHT) about?

The class action lawsuit is being prepared by Rosen Law Firm to recover losses suffered by investors following allegations of financial misconduct.