Kessler Topaz Meltzer & Check, LLP Reminds Cloopen Group Holding Limited Shareholders of Securities Fraud Class Action Lawsuit

RADNOR, PA / ACCESSWIRE / December 28, 2021 / Law firm Kessler Topaz Meltzer & Check, LLP has announced that a securities class action lawsuit has been filed against Cloopen Group Holding Limited (“Cloopen”) (NYSE: RAAS). The lawsuit charges Cloopen of violations of US securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and prospects. As a result of Cloopen’s materially misleading statements to the public, Cloopen investors have suffered significant losses.

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CLICK HERE TO SUBMIT YOUR CLOOPEN LOSSES

Lead plaintiff deadline: February 8, 2022

CLASS PERIOD: February 9, 2021 to May 10, 2021

CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:

James Maro, Esq. (484) 270-1453 or toll free (844) 887-9500 or email at [email protected]

CLOOPEN’SSPECIFIED FAULT BEHAVIOR

Cloopen provides cloud-based communications solutions that enable application programming interfaces and software development kits to embed messaging, voice calls, audio and video, instant messaging, and other communications into an enterprise’s applications, services, and / or business processes.

On February 9, 2021, Cloopen went public (“IPO”) and sold 23 million American Depositary Shares (“ADSs”) at $ 16.00 per ADS. Then, on March 26, 2021, Cloopen released its financial results for the fourth quarter of 2020 for the period ended December 31, 2020. Cloopen reported revenue of just $ 39.6 million ($ 2 million under consensus of the Analysts), as well as net losses of $ 46.8 million (up 466.9% year over year) and operating expenses of $ 27.6 million (up 30% over Q4 2019). In response to his alarming net loss, Cloopen blamed a “change in the fair value of warrant liabilities of … $ 34.4 million”. In relation to the 59.2% increase in general administrative expenses, Cloopen requested “an increase in the provision for doubtful accounts due to increased trade accounts receivable”. Following this news, Cloopen ADS price fell $ 2.67 per ADS, or 18.52%, to close at $ 11.75 per ADS on March 26, 2021.

The story goes on

Then, on May 10, 2021, Cloopen stock fell again when the company released its 2020 annual report, announcing for the first time that its dollar-based net retention rate for recurring solutions rose from 102.7% in 2019 to 86 After that news, Cloopen’s ADS price fell by $ 0.62 per ADS, or 6.47%, to close at $ 8.97 per ADS on May 12, 2021.

WHAT CAN I DO?

Cloopen feeders can no later than February 8, 2022, attempt to be appointed as lead class representative by Kessler Topaz Meltzer & Check, LLP, or other legal counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Cloopen investors who have suffered significant losses to contact the company directly for more information.

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Who can be a lead plaintiff?

A lead plaintiff is a representative party who acts on behalf of each of the class plaintiffs in the conduct of the dispute. The main plaintiff is usually the investor or small group of investors who have the greatest financial interest and who are also appropriate and typical of the proposed class of investors. The lead plaintiff selects an attorney to represent the lead plaintiff and the group, and those attorneys, if approved by the court, are lead or class plaintiffs. Your ability to participate in a recovery will not be affected by whether or not you wish to be the lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP

Kessler Topaz Meltzer & Check, LLP pursues class action lawsuits in state and federal courts across the country and worldwide. The company has earned a worldwide reputation for excellence and reclaimed millions of dollars for victims of corporate fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by companies and trustees. Ultimately, we succeeded if the bad guys pay and you get your wealth back. The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.

CONTACT:
Kessler Topas Meltzer & Check, LLP
James Maro, Jr., Esq.
280 König-von-Preußen-Strasse
Radnor, PA 19087
(844) 887-9500 (toll free)
[email protected]

SOURCE: Kessler Topas Meltzer & Check, LLP

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