NEW YORK, Aug. 30, 2021 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action lawsuit in the United States District Court for the Southern District of New York alleging securities law violations against DiDi Global Inc. (“DiDi” or the “Company”) (NYSE: DIDI), the Company’s Chairman of the Board and CEO Will Wei Cheng, CFO Alan Yue Zhuo, the underwriters of the Company’s June 2021 initial public offering (“IPO”), and certain Company Directors that signed or authorized the signing of the offering documents for the IPO.
On June 30, 2021, DiDi conducted its IPO by selling 316.8 million ADSs at $14.00 per ADS.
On July 2, 2021, China’s internet regulator, the Cyberspace Administration of China (CAC), announced that it had launched a review of DiDi, accusing the Company of illegally collecting user data. Reportedly, the regulator also ordered that the DiDi app be removed from Apple’s App Store and that DiDi stop adding new users while the review is conducted. Following this news, the price of DiDi’s shares declined by 5.3% to close at $15.53 per share on July 2, 2021.
Then, on Sunday July 5, 2021, The Wall Street Journal reported that “[w]eeks before Didi Global, Inc. went public in the U.S., China’s cybersecurity watchdog suggested the Chinese ride-hailing giant delay its initial public offering and urged it to conduct a thorough self-examination of its network security, according to people with knowledge of the matter.” Following this news, DiDi’s shares fell $3.04 per share, or 19.6%, to close at $12.49 per share on July 6, 2021.
Finally, on July 22, 2021, 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.
If you are a member of the proposed Class because you purchased DiDi securities in and/or traceable to the offering documents for the IPO or between June 30, 2021 and July 21, 2021, you may move the court no later than September 7, 2021 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 646-315-9003.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 329-8571
E-mail: jcampisi@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
