DiDi Global Inc. Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against DiDi Global Inc.

Sep 15, 2021 11:06 AM ET


The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors that securities fraud class action lawsuits have been filed on behalf of those who purchased or acquired DiDi: (a) American Depositary Shares ("ADSs") pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with DiDi's June 2021 initial public offering ("IPO"); and/or (b) securities between June 30, 2021 and July 21, 2021, inclusive (the "Class Period").

DiDi is a mobility technology platform, providing ride hailing and other services in the People's Republic of China ("PRC"), BrazilMexico, and internationally.  DiDi is often called "the Uber of China."

On July 2, 2021, the Cyberspace Administration of China ("CAC") stated that it had launched an investigation into DiDi to protect national security and the public interest. Following this news, DiDi's share price fell $0.87, or approximately 5.3%, to close at $15.53 per share on July 2, 2021.

Then, on July 22, 2021, before market hours, Bloomberg published an article entitled "China Weighs Unprecedented Penalty for Didi After U.S. IPO" which reported, in part, that "Chinese regulators are considering serious, perhaps unprecedented, penalties for Didi Global Inc. after its controversial initial public offering last month."  Following this news, DiDi's share price fell $3.44 per share, nearly 30%, over the next two trading days to close at $8.06 per share on July 23, 2021.

The complaint alleges that the Registration Statement was materially false and misleading and omitted to state that: (1) DiDi's apps did not comply with applicable laws and regulations governing privacy protection and the collection of personal information; (2) as a result, DiDi was reasonably likely to incur scrutiny from the CAC; (3) the CAC had warned DiDi to delay its IPO to conduct a self-examination of its network security; (4) as a result of the foregoing, DiDi would face "serious, perhaps unprecedented, penalties" from relevant authorities; (5) as a result of the foregoing, DiDi's apps were reasonably likely to be taken down from app stores in the PRC, which would have an adverse effect on its financial results and operations; and (6) as a result of the foregoing, the defendants' positive statements about DiDi's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars).  The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
[email protected]

URL : http://www.ktmc.com.

Contact Information:

(844) 887-9500 (toll free)

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