Lead Plaintiff Deadline Announced for Investors Interested in Seeking Appointment as Lead Plaintiff in Class Action Lawsuits Filed Against DiDi Global Inc. (DIDI)
Boston, Massachusetts--(Newsfile Corp. - July 12, 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") (NYSE: 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 "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."
On 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." 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.
On July 8, 2021, Bloomberg reported that Republican Senator Bill Hagerty called on the Securities and Exchange Commission to "examine whether DiDi was forthcoming enough about its contact with Chinese regulators prior to the listing of its shares."
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/89878