DiDi Global, Inc. (DIDI) Failed to Comply with Privacy Protection Laws
The Company sold approximately 316,800,000 shares at $14.00 per share in the IPO, for proceeds of $4,333.1 million. On July 2, 2021, the Cyberspace Administration of China (“CAC”) stated that it had launched an investigation into DiDi to protect national security and the public interest and asked Didi to stop new user registrations during the course of the investigation. On this news, the Company’s share price fell over 5% to close at $15.53 per share on July 2, 2021. On July 4, 2021, DiDi reported that the CAC ordered smartphone app stores to stop offering the “DiDi Chuxing” app because it “collect[ed] personal information in violation of relevant PRC laws and regulations.” DiDi stated that “the app takedown may have an adverse impact on its revenue in China.”
On July 5, 2021, The Wall Street Journal reported that the CAC had asked the Company as early as three months prior to the IPO to postpone the offering due to national security concerns. On this news, the stock fell almost 20%, to close at $12.49 per share on July 6, 2021.
If you purchased ADSs of DiDi Global, Inc. (DIDI) pursuant to the Company’s IPO or between June 30, 2021 and July 2, 2021, you have until September 7, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
