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Yatsen Holding Limited Class Action Update: Robbins LLP Reminds Investors of Lead Plaintiff Deadline in Class Action Against Yatsen Holding Limited (YSG)
Globe Newswire 4-Oct-2022 7:27 PM
SAN DIEGO, Oct. 04, 2022 (GLOBE NEWSWIRE) --
The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities who purchased Yatsen Holding Limited (NYSE:YSG) American Depository Shares (ADS) between November 19, 2020 and March 10, 2022, for violations of the Securities Exchange Act of 1934. The complaint also seeks damages on behalf of persons or entities that purchased or acquired Yatsen ADS pursuant to the Company's offering documents in connection with its initial public offering ("IPO"). Yatsen is a China-based holding company engaged in the production and sale of cosmetics and skincare products.
If you would like more information about Yatsen Holding Ltd.'s misconduct, click here.
What is this Case About: Yatsen Holding Limited (YSG) Misled Investors Regarding the Financial Well-Being of its Cosmetics Brands
According to the complaint, during the class period, defendants misled investors into believing 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.
The truth began to reveal itself on August 26, 2021, during the 2Q21 analyst call. Despite touting Perfect Diary and Little Ondine's "steady" and "healthy" performance, defendants 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 [its] main brands." On this news, the price of Yasten's shares declined 17.64%, to close at $4.81 per share.
On November 17, 2021, Yatsen's third quarter 2021 results reached the market. Despite characterizing Yatsen's results as a "success," touting top-line continued growth supported by a significant growth of its skincare brands, Defendants acknowledged witnessing a "soft industry environment for color cosmetics." Notwithstanding, and despite continuing to portray Perfect Diary's performance as "steady," defendants conceded that gross sales from Yatsen's color cosmetics brands, which make up approximately 84% of total gross sales, decreased by mid-single digits due, in part, to "realignment of Little Ondine." On this news, Yatsen's stock fell almost 18% to close at $2.70.
Finally, on March 10, 2022, the Company revealed net revenues for the fourth quarter decreased 22.1% and gross sales for the fourth quarter decreased 17.2%. During an earnings call with analysts, defendants revealed that the disappointing results were due to a deceleration in sales of its leading brands. On this news, Yatsen's ADS cratered, falling 39.5%, to close on March 10, 2022 at just over $0.75 per share. The stock now trades significantly below its IPO price.
Next Steps: If you acquired shares of Yatsen Holding Ltd. pursuant to its IPO or between November 19, 2020 and March 10, 2022, you have until November 22, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Yatsen Holding Ltd. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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