New York, New York--(Newsfile Corp. - October 18, 2021) - Pomerantz LLP is investigating claims on behalf of investors of Waterdrop Inc.("Waterdrop" or the "Company") (NYSE: WDH). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Waterdrop and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or about May 7, 2021, Waterdrop conducted its initial public offering ("IPO"), selling 30 million American Depositary Shares ("ADSs") priced at $12.00 per ADS and raising approximate $360 million.
Then, on June 17, 2021, Waterdrop issued a press release announcing the Company's financial results for the quarter ended March 31, 2021-i.e., the quarter immediately before the IPO. The Company reported that its operating costs and expenses had ballooned over 75%, or RMB579.1 million, to RMB1,343.9 million (US$205.1 million). As a result, the Company suffered an operating loss for the quarter of RMB460.6 million (US$70.3 million), compared with operating loss of RMB111.1 million for the same period of 2020-a more than four-fold increase. This rapid increase in operating expenses was due largely to the cessation of the Company's mutual aid business and growing customer acquisition costs.
Then, on September 8, 2021, Waterdrop issued a press release announcing the Company's financial results for the quarter ended June 30, 2021. The release stated that Waterdrop's operating losses had continued to accelerate, totaling RMB815.4 million (US$126.3 million) for the quarter, compared with an operating profit of RMB7.2 million for the same period of 2020. This was once again due to a sharp increase in the Company's operating costs and expenses, as the Company's operating costs and expenses during the quarter increased by RMB1,081.1 million, or 160.5% year over year, to RMB1,754.7 million (US$271.8 million) from RMB673.6 million for the same period of 2020. Since the IPO, Waterdrop's ADS price has fallen below $3.00 per ADS, representing a decline of more than 75% from the offering price.
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.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100132
