Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 31, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Dada Nexus Limited (NASDAQ: DADA) investors that a lawsuit was filed on behalf of investors that purchased Dada securities between May 11, 2023 and January 8, 2024, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
According to the complaint, during the class period, defendants allegedly failed to disclose two critical pieces of information:
Dada's revenues from online advertising, marketing services, and operations and support costs were significantly overstated.
As a consequence, Dada would need to conduct an independent review to determine the financial impact and the extent of suspicious practices that led to the overstatement of revenues and costs.
On December 19, 2023, Dada made a press release announcing the immediate departure of Chairman of the Board, Mr. Lijun Xin, due to personal reasons. Additionally, the CFO would also be resigning immediately for personal reasons.
Then, on January 8, 2024, Dada disclosed that during a routine internal audit, they had identified suspicious practices that raised doubts about certain revenues from the company's online advertising and marketing services in 2023. Specifically, it was estimated that approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs may have been overstated for the first three quarters of 2023. Moreover, the revenue guidance provided by the company for the fourth quarter and full year of 2023 should no longer be relied upon until further notice.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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