According to the Complaint, Yatsen Holding Limited operates in the Chinese cosmetics market, generating substantially all of its net revenue from the sale of beauty products under the Perfect Diary and Little Ondine brands.

Yatsen made its U.S. market debut on November 19, 2020.

The Complaint alleges that, during the Class Period, including in the registration statement and prospectus used to effectuate the Company’s November, 2020 IPO, Yatsen and the other named Defendants misled investors into believing that Perfect Diary and Little Ondine were thriving, thereby driving Yatsen’s “healthy” top-line growth at the time of its IPO and quarter after quarter thereafter. In truth, however, cosmetic and skincare sales of Perfect Diary and Little Ondine products were declining in the period leading up to (and including at the time of) the IPO and throughout 2021. Moreover, the Complaint alleges, as the truth about Yatsen’s business reached the market, the value of the Company’s shares declined dramatically, causing Yatsen investors to suffer significant damages.

On July 21, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on October 4.