Missfresh Settles Securities Litigation for $4.9 Million

If you purchased or otherwise acquired Missfresh Limited ADSs pursuant to the Offering Documents issued in connection with the ADSs initial public offering in June 2021, you may be eligible to claim an award from a class action settlement.

Missfresh Limited has agreed to pay $4,903,900 to settle a class action lawsuit for alleged violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. These allegations relate to its initial public offering of 24,150,000 American depositary shares (ADSs) for $13.00 per ADS to the investing public on or about June 25, 2021.

Who are the class members?

The Settlement Class is detailed and includes:

• All persons and entities who purchased or otherwise acquired Missfresh ADSs pursuant and/or traceable to the Offering Documents issued in connection with the ADSs initial public offering in June 2021.
• Those who were damaged as a result of the purchase or acquisition.

How much can class members claim?

The settlement provides a $4,903,900 cash fund, which will be distributed to eligible Settlement Class Members after the deduction of Court-approved fees, expenses, and taxes. This is an average recovery of approximately $0.03 per allegedly damaged share before deductions for awarded attorneys’ fees and litigation expenses, and $0.02 per allegedly damaged share after deductions for awarded attorneys’ fees and litigation expenses.

Class members can claim awards based on their Recognized Loss Amounts, which are calculated as follows:

• For shares sold before July 12, 2022, the Recognized Loss Amount is the purchase/acquisition price (not to exceed $390.00) minus the sale price.
• For shares sold between July 12, 2022, and July 18, 2022, the Recognized Loss Amount is the purchase/acquisition price (not to exceed $390.00) minus the sale price (not less than $11.66).
• For shares retained through July 18, 2022, the Recognized Loss Amount is the purchase/acquisition price (not to exceed $390.00) minus $11.66.

The Net Settlement Fund will be distributed on a pro rata basis to Authorized Claimants. If the total Recognized Claims exceed the Net Settlement Fund, each Authorized Claimant will receive their pro rata share. If the Net Settlement Fund exceeds the total Recognized Claims, the excess will be distributed pro rata to all Authorized Claimants.

Is proof required to submit a claim?

Yes, claimants need to provide proof of their transactions in Missfresh ADSs to claim an award.

• Broker confirmations or other documentation of purchases, acquisitions, and sales of Missfresh ADSs.
• Documentation of the number of shares held at the close of trading on July 18, 2022.

Submitting a claim

To claim your award, you must submit a Claim Form either online or by mail.

If you prefer to mail your claim, send it to:

Missfresh Securities Settlement

c/o Verita Global, LLC

P.O. Box 301135

Los Angeles, CA 90030

Ensure your Claim Form is postmarked or received no later than October 5, 2024.

Payment methods

Once your claim is approved, you will receive your payment from the Net Settlement Fund. Payments will be made by check or electronic transfer, depending on the information you provide on your Claim Form.

$4,903,900 settlement fund

The settlement fund of $4,903,900 will cover:

• Payments to eligible Settlement Class Members
• Court-approved attorneys’ fees and litigation expenses
• Notice and administration expenses
• Taxes

The attorneys’ fees and litigation expenses are capped at $1,425,975, which includes up to $1,225,975 for attorneys’ fees and up to $200,000 for litigation expenses.

Important dates

• Exclusion Deadline: Received by September 19, 2024
• Claim Filing Deadline: Postmarked or Submitted Online by October 5, 2024
• Settlement Hearing: October 10, 2024, at 4:30 p.m.

When is the Missfresh Settlement payout date?

The awards will be paid after the Court grants final approval of the settlement and any appeals are resolved.

Why is there a class action settlement?

The settlement resolves claims that Missfresh Limited and other defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 by making false and misleading statements in the Offering Documents for the ADSs initial public offering.

What’s next?

Next steps include the Court’s final approval of the settlement and the distribution of the Net Settlement Fund to eligible Settlement Class Members. Ensure you submit your Claim Form by the deadline to participate in the settlement.