New York, New York--(Newsfile Corp. - July 23, 2021) - Pomerantz LLP is investigating claims on behalf of investors of. DiDi Global Inc. f/k/a Xiaoju Kuaizhi Inc. ("DiDi" or the "Company") (NYSE: DIDI). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether DiDi and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around June 30, 2021, Didi conducted its initial public offering ("IPO"), selling approximately 316.8 million American Depositary Shares ("ADSs"), priced at $14.00 per ADS. Then, on July 2, 2021, the Cyberspace Administration of China ("CAC") stated that it had launched an investigation into DiDi to protect national security and the public interest. The CAC also reported that it had asked DiDi to stop new user registrations during the course of the investigation.
On this news, DiDi's ADS price fell $0.87 per ADS, or approximately 5.3%, to close at $15.33 per ADS on July 2, 2021.
Then, on 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." Then, 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, DiDi's ADS price fell another $3.04 per share, or 19.6%, to close at $12.49 per share on July 6, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.