DIDI ALERT: Shareholders With Substantial Losses Have Opportunity to Lead the DiDi Global Inc. Class Action Lawsuit
SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that buyers of DiDi Global Inc. (NYSE: DIDI) will have American Depositary Shares (“ADSs”) in accordance with and / or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) which were issued in connection with the IPO of DiDi in June 2021 (“IPO”) and / or DiDi securities between June 30, 2021 and July 2, 2021 inclusive (the “Collection Period”) have until the 7th Plaintiff in the DiDi class action. The DiDi class lawsuit charges DiDi, some of its officers and directors, and the underwriters of DiDi’s initial public offering for violating the Securities Act of 1933 and / or the Securities Exchange Act of 1934. The DiDi class action lawsuit was initiated on July 6, 2021 in Southern District of New York and is headed Espinal v. DiDi Global Inc. f / k / a Xiaoju Kuaizhi Inc., No. 21-cv-05807. A similar lawsuit, headed Chopra v DiDi Global Inc., No. 21-cv-05973, is also pending in the South District of New York, while another similar lawsuit, headed Franklin v DiDi Global Inc., No. 21-cv -05486, is pending in the Central District of California.
If you have suffered significant losses and wish to be the lead plaintiff in the DiDi class action, please provide your information by clicking here. You can also contact Attorney JC Sanchez of Robbins Geller by phone at 800 / 449-4900 or by email at email@example.com. Motions by the lead plaintiffs for the DiDi class action must be filed with the court by September 7, 2021.
CASE CLAIM: DiDi claims to be the “go-to shared mobility brand in China” offering a range of services such as ride hailing, taxi hailing, chauffeur and hitchhiking. Through its IPO, DiDi sold approximately 316 million shares at a price of $ 14.00 per share, with four ADSs representing one Class A common share of DiDi.
The DiDi class action alleges that during the class action period the defendants made false and misleading information and failed to disclose: (i) DiDi’s apps did not comply with applicable laws and regulations on data protection and the collection of personal data; (ii) as a result, it was quite likely that DiDi would have undergone review by the Cyberspace Administration of China; (iii) the Cyberspace Administration of China had already warned DiDi to postpone its IPO in order to conduct a self-assessment of its network security; (iv) based on the foregoing, it was quite likely that DiDi’s apps would be removed from app stores in China, which would adversely affect financial results and operations; and (v) as a result, Defendants’ positive statements about DiDi’s business, business and prospects were materially misleading and / or unfounded.
On July 2, 2021, the Cyberspace Administration of China announced that it had opened an investigation into DiDi to protect national security and the public interest. The Cyberspace Administration of China also reported that in the course of the investigation it had asked DiDi to stop registering new users. Because of this news, DiDi’s share price fell more than 5%.
Then, on Sunday, July 4th, 2021, DiDi reported that the Cyberspace Administration of China had instructed smartphone app stores to stop offering the “DiDi Chuxing” app because it was “collecting”[ed] personal data in violation of relevant [People’s Republic of China] Laws and policies. “Although users who had previously downloaded the app could still use it, DiDi stated that” disabling the app could adversely affect revenue in China. “Finally, the Wall Street Journal reported on July 5th 2021 that the Cyberspace Administration of China asked DiDi three months before going public to postpone its offering due to concerns about national security and “do a thorough self-assessment of its network security.” %, which did further damage to investors.
UPDATE: On July 9, 2021, the Wall Street Journal reported that the Chinese authorities “ordered mobile app stores to remove 25 additional apps operated by DiDi Global Inc.’s Chinese branch against the carpooling service.”
THE LEAD APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who has acquired and / or traceable to DiDi ADSs pursuant to the Registration Statement issued in connection with the listing of DiDi and / or DiDi securities during the Class Action Period is to apply for appointment as lead plaintiff in the DiDi class action. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in leading the DiDi class action. The lead plaintiff can choose a law firm of their choice to bring the DiDi class action lawsuit. An investor’s ability to participate in a possible future recovery of the DiDi class action lawsuit does not depend on serving as the lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder recoveries in history, including the largest securities class action of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for getting $ 1.6 billion back for investors last year, more than double the amount paid by any other securities plaintiff firm was drafted. Please visit https://www.rgrdlaw.com/firm.html for more information.
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