Chinese co-living company Phoenix Tree Holdings, operating the Danke and Dream Apartment brands, which launched its $130 million IPO earlier this year, is being sued in New York for allegedly misleading investors about its risks. These include the threat it faced from COVID-19 and disputes with existing tenants.
Phoenix Tree owns a Beijing-based online co-living platform that currently operates in 13 cities including Wuhan.
The company’s disclosures to investors on January 16 didn’t include discussion of the novel coronavirus, already ravaging China and especially Wuhan. At the end of March, its financial results for the end of 2019 now said it expected COVID-19 to affect its business, which set its share price on a continuing downward trajectory.