Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against DiDi Global Inc.
RADNOR, Pa., July 31, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP announces that class actions for securities fraud have been filed in both US District Courts for the Southern District new York and the central district of California against DiDi Global Inc. (NYSE: DIDI) (“DiDi”) on behalf of those who acquired or acquired DiDi: (a) American Depositary Shares (“ADSs”) in accordance with and / or traceable to the Registration Statement and Prospectus (collectively , the “Registration Statement”) in connection with DiDi’s June 2021 Initial Public Offering (“IPO”); and / or (b) securities between June 30, 2021 and July 21, 2021, including (the “Class Period”).
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Deadline reminder: Investors who have purchased or acquired DiDi ADSs in accordance with the registration certificate issued in connection with the IPO and / or DiDi securities during the class action period can at the latest September 7, 2021to be appointed as the group’s lead plaintiff. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; by email to email@example.com; or click on https://www.ktmc.com/didi-global-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=didi
DiDi is a mobility technology platform that offers ride-hailing and other services in People’s Republic of China (“People’s Republic of China”), Brazil, Mexico, and internationally. It offers ride hailing, taxi hailing, chauffeur, hitch and other forms of shared mobility services as well as business ride solutions for companies; Car solutions consisting of leasing, refueling and maintenance and repair services; Leasing of electric vehicles; Bicycle and e-bike sharing, inner-city freight transport, food delivery and financial services. DiDi was formerly known as Xiaoju Kuaizhi Inc. and changed its name to DiDi Global Inc. to June 2021. DiDi is often referred to as “the Uber of.” designated China. “
The story goes on
on June 30, 2021, DiDi submitted its prospectus on Form 424B4, which is part of the registration declaration. When it went public, DiDi sold around 316,800,000 shares at a price of $ 14.00 per share. Four ADS represent one Class A common share.
The truth was beginning to emerge July 2, 2021 when the cyberspace administration of China (“CAC”) said it had launched an investigation into DiDi to protect national security and the public interest. After this news, DiDi’s share price fell $ 0.87, or about 5.3% to close at $ 15.53 per share July 2, 2021.
Then further Sunday 4th July 2021, DiDi reported that the CAC has instructed smartphone app stores to stop offering the “DiDi Chuxing” app because it “collects”[ed] personal data in violation of the relevant laws and regulations of the People’s Republic of China. “DiDi has been instructed to make changes to comply with Chinese data protection regulations in order to” ensure the security of users’ personal data “. July 5, 2021, The Wall Street Journal reported that the CAC had asked DiDi three months before going public to postpone its offer for national security reasons and “conduct a thorough self-assessment of its network security.” After this news, DiDi’s share price fell $ 3.04 per share, or 19.6% to close on $ 12.49 per share July 6, 2021.
Finally on July 22, 2021, Bloomberg published an article ahead of opening hours entitled “China Weighs Unprecedented Penalty for Didi After IPO in the US,” which in part reported that “Chinese regulators have imposed severe, perhaps unprecedented, penalties on Didi Global following its controversial IPO Inc. Consider Last Month. “After that news, DiDi’s share price fell $ 3.44 per share, almost 30%, in the next two trading days until the closing price $ 8.06 per share July 23, 2021.
The complaint alleges that the registration statement was essentially false and misleading and failed to state: (1) DiDi’s apps did not comply with applicable data protection and personal data collection laws and regulations; (2) as a result, it was quite likely that DiDi was subject to review by the CAC; (3) the CAC had warned DiDi to postpone its IPO in order to conduct a self-assessment of its network security; (4) As a result of the above, DiDi would expect “severe, perhaps unprecedented, penalties” from the relevant authorities; (5) Based on the foregoing, it was quite likely that DiDi’s apps would be removed from app stores in the PRC, which would adversely affect financial results and business operations; and (6) as a result of the foregoing, Defendants’ positive statements regarding DiDi’s business, operations and prospects were materially misleading and / or unfounded.
DiDi investors can do so at the latest September 7, 2021, attempt to be appointed as lead class representative by Kessler Topaz Meltzer & Check, LLP, or other legal counsel, or they may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in the conduct of the dispute. To be appointed as a lead plaintiff, the court must determine that the class plaintiff’s claim is typical of the claims of other class plaintiffs and that the class plaintiff is adequately representing the class action. Your ability to participate in a recovery will not be affected by whether or not you want to be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of state and federal laws. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, recovering billions of dollars on behalf of institutional and private investors The United States and all over the world. The firm represents investors, consumers and whistleblowers (individuals who report fraudulent practices to the government and participate in recovery of government dollars). 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.
Kessler Topas Meltzer & Check, LLP
James Maro, Jr., Esq.
Radnor, PA 19087
(844) 887-9500 (toll free)
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