We are investigating Phoenix Tree Holdings Limited (DNK) (“Phoenix Tree” or the “Company”) for potential violations of the federal securities laws.
On or around January 22, 2020, Phoenix Tree conducted its initial public offering (“IPO”), selling 9.6 million American depositary shares (“ADSs”) priced at $13.50 per share. Then, on March 25, 2020, Phoenix issued a press release announcing its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019, cautioning investors that the Company expected the COVID-19 pandemic to adversely affect its financial performance for the first quarter of 2020. Since the IPO, the value of the Company’s ADSs has fallen sharply, damaging investors.