Berman Tabacco Investigates Potential Securities Claims in Against DiDi Global Inc. (DIDI) in Connection with Its Initial Public Offering
Boston, Massachusetts--(Newsfile Corp. - July 7, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations against DiDi Global Inc. f/k/a Xiaoju Kuaizhi Inc. ("DiDi" or the "Company") (NASDAQ: DIDI) (CUSIP: 23292E108), senior management and underwriters in connection with the Company's June 2021 initial public offering ("IPO").
DiDi is a Chinese-based company that purports to be the world's largest mobility technology platform. The Company claims to be the "go-to brand in China for shared mobility," offering a range of services including ride hailing.
On June 30, 2021, the Company initiated its IPO selling approximately 316.8 million American Depository Shares ("ADS" or "shares") at $14.00 per share.
On July 2, 2021, The Wall Street Journal reported that the Cyberspace Administration of China ("CAC") stated 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 July 4, 2021, DiDi issued a press release disclosing that the CAC had posted an announcement that "it was reported and confirmed that the 'DiDi Chuxing' app had the problem of collecting personal information in violation of relevant PRC laws and regulations" and that "the CAC notified app stores to take down the 'DiDi Chuxing' app in China, and required the Company to strictly comply with relevant laws and regulations, follow the relevant standards set by the PRC government authorities, and rectify the problem to ensure the security of users' personal information." DiDi further stated that "[o]nce the 'DiDi Chuxing' app is taken down from app stores in China, the app can no longer be downloaded in China, although existing users who had previously downloaded and installed the app on their phones prior to the takedown may continue using it…. The Company expects that the app takedown may have an adverse impact on its revenue in China."
On July 5, 2021, The Wall Street Journal reported that "Weeks 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." 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 July 6, 2021, two securities class actions were filed in the Central District of California (the "California Action") and Southern District of New York ("New York Action"), respectively. The California Action asserts claims under the Securities Act of 1933 (the "Securities Act") on behalf of purchasers of DiDi shares pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company's IPO. The New York Action includes similar Securities Act claims and also claims under the Securities Exchange Act of 1934 (the "Exchange Act") on behalf of purchasers of DiDi shares between June 30, 2021 and July 2, 2021 (the "Class Period").
Both class actions similarly assert that the Company failed to disclose that DiDi had issues with collecting personal information in violation of relevant People's Republic of China laws and regulations and that DiDi's app, DiDi Chuxing, was facing an imminent cybersecurity review by the CAC. The deadline for seeking lead plaintiff is September 7, 2021.
If you purchased DiDi securities between June 30, 2021 and July 2, 2021, and would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: https://www.bermantabacco.com/case/didi-global-inc/.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89674