First High-School Education Group Co., Ltd
A class action lawsuit has been filed in the USDC, S.D.N.Y. against First High-School Education Group Co., Ltd. (“FHS” or the “Company”), on behalf of all persons or entities who purchased American Depositary Shares (“ADSs”), in or traceable to the Company’s March 2021 initial public offering (the “IPO”).
The Complaint alleges that the Registration Statement was negligently prepared and, as a result, contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make adequate disclosures required under the rules and regulations governing the preparation of such documents. Specifically, they failed to disclose the following adverse facts that existed at the time of the IPO:
- that the new rules, regulations and policies to be implemented by the Chinese government following the Two Sessions parliamentary meetings were far more severe than represented to investors and posed a material adverse threat to the Company and its business;
- that contemplated Chinese regulations and rules regarding private education were leading to a slowdown of government approval to open new educational facilities which would have a negative effect on FHS’s enrollment and growth; and
- that, as a result, the Registration Statement’s representations regarding FHS’s historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of the Company at the time of the IPO, and were materially false and misleading and lacked a factual basis.
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