PHILADELPHIA, March 09, 2024 (GLOBE NEWSWIRE) -- Nationally recognized law firm Berger Montague PC informs investors that a lawsuit was filed against Dada Nexus Limited (“Dada”) (NASDAQ: DADA) on behalf of purchasers of Dada’s securities between May 11, 2023 and January 8, 2024, inclusive (the “Class Period”).
Investors that suffered losses from Dada Nexus Limited (“Dada”) (NASDAQ: DADA) investments can follow the link below for more information regarding the lawsuit:
CLICK HERE to learn more about the lawsuit.
Investors who purchased or acquired Dada securities during the Class Period may, no later than March 11, 2024, seek to be appointed as a lead plaintiff representative of the class.
The complaint alleges that, throughout the Class Period, the defendants made 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; and (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.
According to the lawsuit, on January 8, 2024, before market hours, Dada issued a press release on a Form 6-K, which stated, in relevant part, “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.” The press release further stated that Dada “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 [Dada] for the fourth quarter and full year of 2023 should no longer be relied upon until further notice.”
Following 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.
For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015 or CLICK HERE.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. 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.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
