Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of Dada Nexus Limited who purchased shares between May 11, 2023 and January 8, 2024.
Dada Nexus and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 8, 2024, pre-market, the Company disclosed that “certain suspicious practices were identified that may cast doubt on certain revenues from the Company’s online advertising and marketing services in 2023,” specifically estimated to include “approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs [that] may have been overstated, respectively, for the first three quarters of 2023.” Further, the Company stated that “the revenue guidance previously provided by the Company for the fourth quarter and full year of 2023 should no longer be relied upon until further notice.”
On this news, the price of Dada’s American Depositary Receipts plummeted approximately 45%, to close at $17.12 per share, on January 8, 2024.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until March 11, 2024 to request that the court appoint them lead plaintiff.