NEW YORK, October 5, 2021 / PRNewswire / – Bernstein Liebhard, a leading investor rights law firm, reminds investors of the deadline to file a principal plaintiff claim no later than November 15, 2021in a securities class action lawsuit that was filed on behalf of investors who purchased or acquired shares of Waterdrop Inc. (âWaterdropâ or the âCompanyâ) (NYSE: WDH) American Depositary Shares (âADSâ or “Actions”) of May 4, 2021 through September 14, 2021(the âRecourse Periodâ). The lawsuit filed in United States District Court of the Southern District of new York alleges violations of the Securities Act of 1934.
If you purchased Waterdrop securities, and / or would like to discuss your legal rights and options please visit Waterdrop Inc Shareholder Class Action or contact RujulPatel free of charge at (877) 779-1414 Where [email protected]
According to the complaint, Waterdrop’s IPO registration statement contained false and / or misleading statements and / or did not disclose that: (1) Waterdrop had achieved a substantial portion of its revenue growth historic by 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) as a result of the foregoing, there was a material undisclosed risk and a substantial likelihood that Waterdrop would be the subject of serious adverse action by 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 IPO registration statement regarding Waterdrop’s historical financial and operating metrics and alleged market opportunities did not accurately reflect the business, operations , the actual financial results and trajectory of the Company in the run-up to the IPO, were materially false and misleading, and lacked a factual basis. When the real details entered the market, the lawsuit claims that investors have suffered damage.
In May 2021, Waterdrop completed its initial public offering (the “IPO”), selling 30 million ADS to $ 12.00 per share.
At August 11, 2021, several news sources reported that from China The banking and insurance watchdog, China Banking and Insurance Regulatory Commission, had issued an order directing insurance companies, including Waterdrop, to cease inappropriate marketing and pricing practices plaguing the region. industry and improve the protection of user privacy.
At September 8, 2021, Waterdrop announced its financial results for the quarter ended June 30, 2021, noting that operating losses had continued to accelerate due to a sharp increase in the Company’s operating costs and expenses. At September 13, 2021, Waterdrop ADS dropped to a minimum of $ 3 per share, losing 75% of the value at which it was sold to the investing public.
If you wish to act as the principal applicant, you must apply to the Court at the latest November 15, 2021. A principal plaintiff is a representative party acting on behalf of the other members of the class to direct the litigation. Your ability to participate in any recovery does not require you to serve as the principal applicant. If you choose not to take any action, you can remain an absent member of the group.
If you purchased Waterdrop securities, and / or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/waterdropinc-wdh-shareholder-class-action-lawsuit-fraud-stock-440/apply/ or contact Rujul patel free of charge at (877) 779-1414 Where [email protected]
Since 1993, Bernstein Liebhard LLP has collected more than $ 3.5 billion for its customers. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and take legal action on their behalf. Due to its success in litigating hundreds of lawsuits and class actions, the firm has been named thirteen times on the National Law Journal’s Plaintiff List and listed in The Legal 500 for ten consecutive years.
LAWYER ADVERTISING. Â© 2021 Bernstein Liebhard LLP. The law firm responsible for this announcement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this announcement in the State of Connecticut is Michael S. Bigin. Past results do not guarantee or predict a similar result with respect to any future matter.
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