Labaton Sucharow Announces the Filing of a Securities Class Action Against DiDi, Investors Encouraged to Contact the Firm by September 7
NEW YORK, NY / ACCESSWIRE / July 28, 2021 / Labaton Sucharow LLP, a nationally ranked and award-winning shareholder rights law firm, announces that a securities class action has been filed against DiDi Global Inc (‘DiDi’ or the ‘Company’) (NYSE:DIDI) for violations of the federal securities laws. Investors who purchased or otherwise acquired shares (1) pursuant and/or traceable to the Company’s initial public offering conducted in June 2021 (the ‘IPO’), and/or (2) securities between June 27, 2021, and July 6, 2021, inclusive (the ‘Class Period’), are encouraged to contact the firm before September 7, 2021.
On July 2, 2021, just two days after DiDi held its IPO on the New York Stock Exchange, the Cyberspace Administration of China (‘CAC‘) announces that it had launched a cybersecurity review into DiDi ‘aim[ed] at preventing risks related to national data security.’ In a press release also issued on that day, the Company stated that ‘[d]uring the [CAC’s] review, DiDi is required to suspend new user registration in China.’ On this news, the company’s share price fell $0.87, or approximately 5.3%, to close at $15.53 per share on July 2, 2021, on unusually heavy trading volume.
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.’ Though users who previously downloaded the app could continue to use it, DiDi stated that ‘the app takedown may have an adverse impact on its revenue in China.’
On July 5, 2021, The Wall Street Journal reported that the CAC had asked the company 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.’ On this news, the Company’s stock price fell $3.04 per share, or 19.6%, to close at $12.49 per share on July 6, 2021, on unusually heavy trading volume.
By the commencement of this action, DiDi’s stock was trading as low as $12.06 per share, a nearly 14% decline from the $14 per share IPO price.
If you currently own American Depositary Receipts (‘ADRs’) in DIDI or securities acquired between June 30, 2021, and July 2, 2021, contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at [email protected] to receive additional information and protect your investments free of charge.
About the Firm
Labaton Sucharow LLP is one of the world’s leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at www.labaton.com.
David J. Schwartz
SOURCE: Labaton Sucharow LLP
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