A lawsuit has been filed on behalf of Dada investors who purchased or acquired shares between May 11, 2023 and January 8, 2024.
What Should DADA Investors Do?
If you invested in Dada Nexus Limited, visit our website by clicking here, or call us toll-free at (888) 410-2925 to discuss how you may be able to recover your losses. If you purchased Dada securities during the Class Period, you may be entitled to potential compensation without paying any out-of-pocket fees or costs. Investors have until March 11, 2024, to apply to be a lead plaintiff in the Dada class action lawsuit.
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“estimates that approximately RMB 500 million of revenues from online advertising and marketing services and RMB 500 million of operations and support costs may have been overstated, respectively, for the first three quarters of 2023.”
What is this Lawsuit & Investigation About?
Before the market opened on January 8, 2024, Dada revealed 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.” According to Dada, the company “estimates that approximately RMB 500 million of revenues from online advertising and marketing services and RMB 500 million of operations and support costs may have been overstated, respectively, for the first three quarters of 2023.” In its January 8th filing, Dada added that previous revenue guidance for the fourth quarter and full year of 2023 should no longer be relied upon. The Dada Nexus lawsuit claims that the abrupt departures of the company’s Chairman of the Board, Lijun Xin, and the company’s CFO, Beck Zhaoming Chen, were the “result of the restatement” of Dada’s 2023 revenue guidance.
Following this news, Dada stock plummeted over 45% in intraday trading on January 8, 2024, causing significant harm to investors.
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