| COMPANY |
Dada Nexus Limited |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
24-cv-00239 |
| JUDGE |
The Hon. Stephen V. Wilson |
| CLASS PERIOD |
May 11, 2023 through January 8, 2024 |
| SECURITY TYPE |
Securities |
Dada investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than March 11, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Dada Nexus Limited (“Dada”) (NASDAQ: DADA) securities between May 11, 2023 and January 8, 2024, both dates inclusive (the “Class Period”).
Case Background:
On December 19, 2023, Dada issued a press release and revealed that the company’s Chairman of the Board of Directors would be stepping down immediately. Dada additionally disclosed that its CFO would also be resigning, effective immediately.
Then, on January 8, 2024, Dada announced "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." Specifically, Dada disclosed that "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." On this news, the price of Dada’s American Depositary Receipts fell $1.45 per share, or 45.87%, to close at $17.12 per share, on January 8, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Dada revenues from online advertising, marketing services, and operations and support costs were materially overstated; (2) as a result, Dada would need to conduct an independent review to ascertain the financial impact and the scope of suspicious practices that led to overstated revenues and costs; and (3) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.