KE Holdings Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired KE Holdings Inc. (“KE Holdings” or the “Company”) (NYSE: BEKE) American Depositary Shares (“ADSs”) from August 13, 2020 through December 16, 2021, inclusive (the “Class Period”). Investors have until February 28, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
KE Holdings is a leading integrated online and offline platform for housing transactions and services in China. Key to the Company’s business is the number of real estate agents and stores that use its platform. KE Holdings mainly generates revenues from fees and commissions in housing transactions and services.
On August 13, 2020, the Company sold 106 million ADSs at a price of $20 per ADS, raising approximately $2.12 billion.
On December 16, 2021, during the trading day, Muddy Waters Capital LLC (“Muddy Waters”), a research-based equity investor, announced that it took a short position in the Company because its research showed that KE Holdings was overstating the agents and stores on its platforms; its gross transaction value (“GTV”); and its revenues, among other wrongdoing. On this news, the Company’s ADS price declined by $0.37 per ADS, or approximately 1.98%, from $18.68 per ADS to close at $18.31 per ADS on December 16, 2021.
The lawsuit alleges throughout the Class Period, Defendants inflated (a) the Company’s GTV; (b) the Company’s revenues; (c) the number of stores and agents using the Company’s platform; and (d) that, as a result, of the foregoing, Defendants’ statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.