$MSS Hindenburg found EB-5 visa fraud allegations, WhatsApp stock pumping, and undisclosed related-party dealings. All in one IPO. 83.6% drop. Settlement reached.

This one has more layers than most.

Maison Solutions is an Asian specialty grocery chain in the Los Angeles area, HK Good Fortune Supermarkets, Hong Kong Supermarkets. IPO'd October 5, 2023 at $4.00 per share. Standard small-cap grocery story on the surface.

Seventy-one days later, Hindenburg Research published a report. Here's what they found:

Layer 1 — The related-party problem: Maison described XHJC Holdings as a vendor and centralized supplier in its IPO filings. What it didn't disclose: XHJC was also a related party. The IPO proceeds were also earmarked to acquire stores from the CEO's own spouse and from the CEO himself, details that were in the filings but framed in a way investors say obscured the full picture.

Layer 2 — The EB-5 visa fraud allegations: Hindenburg alleged that CEO John Xu, J&C International Group, and Hong Kong Supermarkets had previously been accused of using supermarkets as a front to defraud the EB-5 visa program, a federal program that grants green cards to foreign investors who create US jobs. None of those prior allegations appeared in the IPO disclosures.

Layer 3 — The WhatsApp pump: Hindenburg also alleged Maison's stock was being actively promoted in WhatsApp chat rooms to drive buying activity post-IPO.

December 15, 2023: Report drops. $MSS falls 83.6% in a single session, from above IPO price to $2.50.

Investors filed suit in January 2024. Tentative settlement reached February 2026. Applications open now while terms are finalized.

Eligible if you held $MSS between October 5 and December 15, 2023.

EB-5 visa fraud allegations + undisclosed related-party dealings + WhatsApp pumping in one 71-day IPO window is a remarkable combination. Anyone here follow Hindenburg's small-cap reports closely enough to have caught this one?