According to the Complaint, Huazhu Group Ltd. ("Huazhu" or the Company) operates hotels in China. It was formerly called China Lodging Group Ltd. and changed its name to Huazhu, effective June 1, 2018.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company lacked adequate security measures to protect customer information; (2) that, as a result of the foregoing, the Company would be susceptible to increased litigation risk and higher expenses; (3) that, as a result of the foregoing, the Company’s goodwill would potentially suffer, leading to lower revenues; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On January 17, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel.