Full Truck Alliance Co. Ltd. (YMM) Failed to Disclose it was the Subject of a Cybersecurity Review by the Chinese Government that Threatened the Company’s Ability to Operate and Grow its Proprietary Platform
The Company sold approximately 82.5 million shares at $19.00 per ADS in the IPO, for proceeds of $1.56 billion. On July 4, 2021, it was reported that Full Truck Alliance had been targeted by the Cyberspace Administration of China (“CAC”) for perceived threats on the Company’s platform to national security interests and user data security. On July 5, 2021, Full Truck Alliance issued a press release confirming it was subject to a review of its data collection and maintenance practices by the CAC and that it had been ordered to suspend all new user registrations during the review period to “prevent the expansion of potential risks.” The Company stated it was “conducting a comprehensive self-examination of any potential cybersecurity risks and will continue to improve its cybersecurity systems and technology capabilities,” confirming the Company’s existing practices were materially deficient and in need of improvement. On this new, Full Truck Alliance’s ADSs fell to a low of $14.89 per ADS – a nearly 22% decline from the IPO price – before closing at $17.75 per ADS.
If you purchased ADSs of Full Truck Alliance Co. Ltd. (YMM) pursuant to the Company’s IPO, you have until September 6, 2021, to ask the court to appoint you lead plaintiff for the class.
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