RADNOR, Pa., July 31, 2021 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that securities fraud class action lawsuits have been filed in both the United States District Courts for the Southern District of New York and the Central District of California against DiDi Global Inc. (NYSE: DIDI) ("DiDi") 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").
Deadline Reminder: Investors who purchased or acquired DiDi ADSs pursuant and/or traceable to the Registration Statement issued in connection with the IPO and/or DiDi securities during the Class Period may, no later than September 7, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional 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; via e-mail at [email protected]; or click https://www.ktmc.com/didi-global-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=didi
DiDi is a mobility technology platform, providing ride hailing and other services in the People's Republic of China ("PRC"), Brazil, Mexico, and internationally. It offers ride hailing, taxi hailing, chauffeur, hitch, and other forms of shared mobility services, as well as enterprise business ride solutions; auto solutions comprising leasing, refueling, and maintenance and repair services; electric vehicle leasing services; bike and e-bike sharing, intra-city freight, food delivery, and financial services. DiDi was formerly known as Xiaoju Kuaizhi Inc. and changed its name to DiDi Global Inc. in June 2021. DiDi is often called "the Uber of China."
On June 30, 2021, DiDi filed its prospectus on a Form 424B4, which forms part of the Registration Statement. In the IPO, DiDi sold approximately 316,800,000 shares at a price of $14.00 per share. Four ADSs represent one Class A ordinary share.
The Registration Statement emphasized that DiDi purportedly "follow[ed] strict procedures in collecting, transmitting, storing and using user data pursuant to [its] data security and privacy policies." In fact, the Registration Statement claimed that DiDi "collect[s] personal information and other data from [its] users and use such data in the course of [its] operations only with their prior consent."
The truth began to emerge on July 2, 2021 when 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 Sunday, July 4, 2021, DiDi reported that the CAC ordered smartphone app stores to stop offering the "DiDi Chuxing" app because it "collect[ed] personal information in violation of relevant PRC laws and regulations." DiDi was ordered to make changes to comply with Chinese data protection rules to "ensure the safety of the personal information of users." On July 5, 2021, The Wall Street Journal reported that the CAC had asked DiDi as early as three months prior to the IPO to postpone the offering because of national security concerns and to "conduct a thorough self-examination of its network security." Following this news, DiDi's share price fell $3.04 per share, or 19.6%, to close at $12.49 per share on July 6, 2021.
Finally, 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.
DiDi investors may, no later than September 7, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or 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 directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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)
SOURCE Kessler Topaz Meltzer & Check, LLP