An investigation on behalf of investors of Huazhu Group Limited (NASDAQ: HTHT) shares over potential securities laws violations by Huazhu Group Limited and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Huazhu Group Limited (NASDAQ: HTHT) concerning whether a series of statements by Huazhu Group Limited regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

China based Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. On September 21, 2020, a report was issued on Huazhu Group Limited, asserting that Huazhu Group Limited allegedly 'lied about the ownership of its hotel portfolio to produce fake financials.' The report 'confirmed that Huazhu secretly supported operating costs of franchisee hotels owned by undisclosed current Huazhu employees & other undisclosed related parties.' The report also asserted that 'Huazhu concealed operating expenses using undisclosed related party transactions to artificially inflate Huazhu's reported profits' and that it 'calculate[s] that Huazhu's fake profits manifested as RMB 2 billion (US $300 million) of fake PP&E on its CYE '19 balance sheet.'

Shares of Huazhu Group Limited (NASDAQ: HTHT) declined from $42.91 per share on September 18, 2020 to $39.17 per share on September 21, 2020.