LOS ANGELES, September 16, 2021– (BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”), a leading national law firm specializing in shareholder rights, announces that a class action lawsuit has been filed on behalf of investors who have purchased or otherwise acquired Waterdrop Inc. (“Waterdrop” or the “Company”) (NYSE: WDH) American Depositary Shares (“ADS” or “shares”) pursuant to and / or traceable to the Company’s initial public offering in May 2021 ( the “IPO”). Waterdrop investors have up to November 15, 2021 file an application as the principal applicant.
If you have suffered a loss on your Waterdrop investments or would like to inquire about the possibility of pursuing claims to recover your loss under federal securities laws, you can submit your details at https: // www.glancylaw.com/cases/waterdrop-inc /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at [email protected] to learn more about your rights.
In May 2021, Waterdrop completed its IPO, selling 30 million ADS at $ 12.00 per share.
Then, on June 17, 2021, Waterdrop released its financial results for the quarter ended before the IPO, revealing among other results that the company’s operating costs and expenses had increased by more than 75%, or approximately 579. , RMB 1 million, to RMB1, 343.9 million ($ 205.1 million). As a result, the company reported an operating loss for the quarter of 460.6 million RMB (US $ 70.3 million), a fourfold increase from the previous year period.
Then, on August 11, 2021, media reported that the China Banking and Insurance Regulatory Commission ordered insurance companies to end inappropriate marketing and pricing practices and improve privacy protection. users. Bloomberg reported that “[r]Regulators have since decided to shut down some operations, including self-help healthcare platforms operated by Waterdrop. “
Then, on September 8, 2021, Waterdrop announced that its operating losses for the quarter ended June 30, 2021 had continued to increase, totaling 815.4 million RMB ($ 126.3 million), compared to profit of operation of 7.2 million RMB for the same period of 2020.
On September 13, 2021, the company’s ADSs fell to just $ 3 per ADS, which is 75% below the IPO price.
The complaint filed alleges that the defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the company. Specifically, the defendants failed to disclose to investors that: (1) Waterdrop had achieved a substantial portion of its historic revenue growth through illicit means that violated Chinese rules and regulations governing the insurance industry; (2) Waterdrop had been ordered by the Chinese government to shut down its mutual aid platform due to its failure to comply with Chinese law; (3) Waterdrop was under investigation by regulatory authorities for continued violations of Chinese law; (4) due to the foregoing, there was a material undisclosed risk and a substantial likelihood that Waterdrop would experience serious adverse reactions from regulatory authorities as a result of the IPO; (5) Waterdrop’s operating losses more than quadrupled in the first quarter of 2021 due to the cessation of its mutual aid business and the rapid growth in customer acquisition costs; and (6) Due to the foregoing, the statements in the registration statement regarding Waterdrop’s historical financial and operating metrics and alleged market opportunities did not accurately reflect the business, operations, financial results and performance. The Company’s actual trajectory from the perspective of the IPO, was materially false and misleading, and lacked a factual basis.
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If you have purchased or acquired Waterdrop ADSs in accordance with and / or traceable to the IPO, you can apply to the Court at the latest November 15, 2021 ask the Court to appoint you as the principal plaintiff. To be a member of the Class, you do not need to take any action at this time; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the group. If you would like to know more about this action, or if you have any questions regarding this announcement or your rights or interests in any such matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected], or visit our website at www.glancylaw.com. If you are applying by email, please include your mailing address, phone number and number of shares purchased.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210916005121/en/
Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, California 90067