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Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against DiDi Global Inc. for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired DiDi Global Inc. (“DiDi”) (NYSE: DIDI): (a) American Depositary Shares (“ADSs”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with DiDi’s June 2021 initial public offering (“IPO”); and/or (b) securities between June 30, 2021 and July 2, 2021, inclusive (the “Class Period”).
 

DiDi 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 above, you may no later than September 7, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.


DiDi is a mobility technology platform, providing ride hailing and other services in the People’s Republic of China (“PRC”), Brazil, Mexico, and internationally. It offers ride hailing, taxi hailing, chauffeur, hitch, and other forms of shared mobility services, as well as enterprise business ride solutions; auto solutions comprising leasing, refueling, and maintenance and repair services; electric vehicle leasing services; bike and e-bike sharing, intra-city freight, food delivery, and financial services. DiDi was formerly known as Xiaoju Kuaizhi Inc. and changed its name to DiDi Global Inc. in June 2021. DiDi is often called “the Uber of China.” 

On June 30, 2021, DiDi filed its prospectus on a Form 424B4, which forms part of the Registration Statement. In the IPO, DiDi sold approximately 316,800,000 shares at a price of $14.00 per share. Four ADSs represent one Class A ordinary share.

The Registration Statement emphasized that DiDi purportedly “follow[ed] strict procedures in collecting, transmitting, storing and using user data pursuant to [its] data security and privacy policies.” In fact, the Registration Statement claimed that DiDi “collect[s] personal information and other data from [its] users and use such data in the course of [its] operations only with their prior consent.”

The truth began to emerge on July 2, 2021 when the Cyberspace Administration of China (“CAC”) stated that it had launched an investigation into DiDi to protect national security and the public interest. Following this news, DiDi’s share price fell $0.87, or approximately 5.3%, to close at $15.53 per share on July 2, 2021.

After the Class Period, on Sunday, 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 was ordered to make changes to comply with Chinese data protection rules to “ensure the safety of the personal information of users.” On July 5, 2021, The Wall Street Journal reported that the CAC had asked DiDi as early as three months prior to the IPO to postpone the offering because of national security concerns and to “conduct a thorough self-examination of its network security.” Following this news, DiDi’s share price fell $3.04 per share, or 19.6%, to close at $12.49 per share on July 6, 2021.

The complaint alleges that the Registration Statement was materially false and misleading and omitted to state that: (1) DiDi’s apps did not comply with applicable laws and regulations governing privacy protection and the collection of personal information; (2) as a result, DiDi was reasonably likely to incur scrutiny from the CAC; (3) the CAC had warned DiDi to delay its IPO to conduct a self-examination of its network security; (4) as a result of the foregoing, DiDi’s apps were reasonably likely to be taken down from app stores in PRC, which would have an adverse effect on its financial results and operations; and (5) as a result of the foregoing, the defendants’ positive statements about DiDi’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.  

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:  James Maro, Esq. (484) 270-1453; or toll-free at (844) 887-9500; 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.


Please complete this form relating to your transactions for DiDi Global Inc. (NYSE: DIDI): (a) American Depositary Shares (“ADSs”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with DiDi’s June 2021 initial public offering (“IPO”); and/or (b) securities between June 30, 2021 and July 2, 2021, inclusive (the “Class Period”).

You may also contact James Maro, Esq. (484) 270-1453; or toll free at (844) 887-9500; or you may submit your information via email at info@ktmc.com; or you may click here to print a PDF of this form.
 

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# of Shares
Price per Share
 
 
 
Principal Amount
Amount Paid
Series or CUSIP
 
 
 
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of DiDi Global Inc. prior to the Class Period?
Are you a current or former employee of DiDi Global Inc.?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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