Huazhu Group Limited (HTHT)
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Huazhu Group Limited ("Huazhu" or "the Company") (NASDAQ: HTHT). The investigation concerns whether Huazhu and certain of its officers and/or directors have violated federal securities laws.
On September 21, 2020, the investment analyst Bonitas Research published a report alleging that Huazhu “lied about the ownership of its hotel portfolio to produce fake financials.” The report continued to state 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 also said 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.” Following this news, Huazhu’s American depositary share (“ADS”) price dropped during intraday trading on September 21, 2020.
If you are aware of any facts relating to this investigation, or purchased Huazhu ADSs, you can assist this investigation by contacting the firm. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.