NEW YORK, March 11, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Dada Nexus Limited ("Dada" or the "Company") (NASDAQ: DADA). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Dada and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until March11, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Dada securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On December 19, 2023, Dada announced that Lijun Xin and Beck Zhaoming Chen would both resign immediately from their respective roles as Chairman of the Company's Board and Chief Financial Officer, citing personal reasons.
Then, on January 8, 2024, Dada disclosed in a U.S. Securities and Exchange Commission filing "that, in the course of its routine internal audit, certain suspicious practices were identified that may cast doubt on certain revenues from the Company's online advertising and marketing services in 2023." The Company further stated that "[b]ased on its preliminary assessment, and subject to the findings from the Independent Review as explained below, the Company currently estimates that approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs may have been overstated, respectively, for the first three quarters of 2023. In addition, 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." Accordingly, Dada's board of directors "has determined that it would be in the best interest of the Company and the shareholders to conduct an independent review to ascertain the financial impact and the scope of suspicious practices, if any, and the root cause".
On this news, Dada's American depositary receipt ("ADR") price fell $1.45 per ADR, or 45.87%, to close at $17.12 per ADR on January 8, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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 billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
