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Press release content from Business Wire. The AP news staff was not involved in its creation.

INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against DiDi Global Inc.

July 13, 2021 GMT

NEW YORK--(BUSINESS WIRE)--Jul 13, 2021--

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired DiDi Global Inc. (“DiDi” or the “Company”) (NYSE: DIDI ) American Depository Shares (“ADSs”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2021 initial public offering (“IPO”) from June 27, 2021 through July 6, 2021, inclusive (the “Class Period”). Investors have until September 7, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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DiDi purports to be the world’s largest mobility technology platform. The Company claims to be the “go-to brand in China for shared mobility,” offering a range of services including ride hailing, taxi hailing, chauffeur, and hitch.

On or about June 30, 2021, DiDi sold about 316.8 million ADSs in its IPO for $14 per share, raising nearly $4.5 billion in new capital.

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. It also reported that it had asked DiDi to stop new user registrations during the course of the investigation. On this news, the Company’s ADS price declined by $0.87 per ADS, or approximately 5.3%, from $16.40 per ADS on July 1, 2021 to close at $15.53 per ADS on July 2, 2021, thereby injuring investors.

Then, 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.” Though users who previously downloaded the app could continue to use it, DiDi stated that “the app takedown may have an adverse impact on its revenue in China.”

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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 because of national security concerns and to “conduct a thorough self-examination of its network security.” On this news, the Company’s ADS declined by $3.04 per ADS, or approximately 19.6%, from $15.53 per ADS on July 2, 2021, to close at $12.49 per ADS on July 6, 2021, thereby further injuring investors.

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

If you purchased or otherwise acquired DiDi ADSs, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210713005964/en/

CONTACT: Kirby McInerney LLP

Thomas W. Elrod, Esq.

212-371-6600

https://www.kmllp.com

investigations@kmllp.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Kirby McInerney LLP

Copyright Business Wire 2021.

PUB: 07/13/2021 12:24 PM/DISC: 07/13/2021 12:24 PM

http://www.businesswire.com/news/home/20210713005964/en