KE Holdings (BEKE) Investor Settlement
KE Holdings has reached a settlement with $BEKE investors to resolve claims that it misled them about the number of stores and agents on its platform and overstated revenue and transaction volume in connection with its $2.3 billion secondary offering.
Outline
In 2020, KE Holdings promoted itself as a leading housing platform in China and launched a $2.3 billion secondary offering. In late 2021, the company disclosed that many reported stores and agents were inactive, and a short-seller report accused KE of inflating key metrics. Following these events, $BEKE fell by over 20%, and investors filed a lawsuit.
Timeline
August 13, 2020 – KE Holdings went public on the NYSE, raising $2.3 billion.
November 19, 2020 – KE launched a $2.3 billion secondary offering at $58 per share.
November 8, 2021 – KE disclosed that nearly 10% of reported stores and over 15% of agents were inactive.
December 2021 – March 2022 – After disclosures about inflated platform metrics and a short-seller report, $BEKE fell by over 20%.
May 13, 2024 – Plaintiffs filed a third amended complaint.
April 2025 – KE Holdings agreed to a settlement.
Background
KE Holdings operates Beike, a digital real estate marketplace that connects buyers and agents across China. After its IPO and secondary offering, the company reported strong growth, highlighting an increasing number of agents and stores and rising gross transaction value (GTV) as key drivers.
However, in November 2021, KE disclosed that part of its reported stores and agents were inactive. In December, Muddy Waters Research published a report accusing KE of inflating store and agent counts, highlighting the existence of “ghost stores” that did not exist and “clone stores” that were double-counted. The report also alleged that KE overstated its GTV by up to 126% and revenue by 77% for Q2 and Q3 2021.
Following these disclosures, $BEKE fell over 20%, and investors filed a lawsuit alleging that KE Holdings misrepresented material facts related to its secondary offering and overall business performance.
What Can Investors Expect Now?
KE Holdings has reached a settlement with $BEKE investors to resolve claims that it misled them about the number of stores and agents on its platform and overstated revenue and transaction volume in connection with its $2.3 billion secondary offering.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All Persons that purchased or otherwise acquired KE Holdings American Depository Shares (“ADS”) during the period between November 19, 2020 and March 10, 2022, inclusive, or traceable to the Follow-On Offering’s registration statement.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.53 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.12 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.