INVESTOR ALERT: Kirby McInerney LLP reminds investors that a securities class action lawsuit has been filed on behalf of investors in Cloopen Group Holding Limited (RAAS) and encourages investors to contact the company by February 8, 2022



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NEW YORK–(COMMERCIAL THREAD) – Law firm Kirby McInerney LLP reminds investors that a class action lawsuit has been filed with the United States District Court for the Southern District of New York on behalf of those who acquired Cloopen Group Holding Limited (“Cloopen” or the “Company”) (NYSE: RAAS) (a) American Depositary Shares (“ADS”) in accordance with and / or traceable to the registration statement and the prospectus (collectively, the “Registration Statement”) issued under the initial public offering of the Company in February 2021 (the “IPO”); and / or (b) Cloopen securities from February 9, 2021 to May 10, 2021 inclusive (the “Recourse Period”). Investors have until February 8, 2022 to ask the court to be named lead plaintiffs in the lawsuit.

Cloopen is the largest provider of multi-capacity cloud communications solutions in China. The Company is allegedly the only Chinese vendor to offer a full suite of cloud-based communication solutions covering Communication Platform as a Service (“CPaaS”), Cloud-Based Contact Centers (CC-based cloud) and cloud-based unified communications and collaborations (cloud-based UC&C). Cloopen serves a diverse and loyal customer base made up of businesses of all sizes in a variety of industries including the internet, telecommunications, financial services, education, industrial manufacturing and energy.

On March 26, 2021, just over six weeks after its IPO, Cloopen shocked the market by releasing its financial results for Q4 2020 and FY2020, for periods ending December 31, 2020, more than one months before the IPO. Cloopen reported revenues of just $ 39.6 million in 4Q 2020, $ 2 million less than analyst consensus, net losses of $ 46.8 million, a staggering increase of 466.9 % year-over-year and operating expenses of $ 27.6 million, a 30% increase from 4Q 2019. Cloopen blamed a “change in the fair value of bond liabilities subscription of. . . US $ 34.4 million ”for the remarkable net loss of Cloopen and“ an increase in the allowance for doubtful accounts resulting from the increase in trade receivables ”for the increase of 59.2% in general and administrative expenses. On this news, Cloopen’s ADS price fell $ 2.67 per ADS, or about 18.52%, from $ 14.42 per ADS to close at $ 11.75 per ADS on March 26, 2021.

On May 10, 2021, after the market closed, Cloopen filed its annual report on Form SEC 20-F, revealing additional facts about the failure of its growth strategy and the decline of its customer base, including that its rate of net dollar retention at the end of 2020 has plummeted. well below historical periods.

The lawsuit alleges throughout the litigation period, the registration statement failed to disclose that Cloopen’s growth strategy was not working and that its existing customers were abandoning the company. He further alleges that the registration statement did not disclose that an increasing number of Cloopen customers were refusing to pay, forcing the company to record massive increases in its accounts receivable and bad debt allowance, and that the registration statement also allegedly failed to disclose that Cloopen was weighed down by colossal fair value liabilities of certain recently granted warrants.

If you have purchased or acquired Cloopen ADS, have any information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by emailing [email protected], or by completing this contact form, to discuss your rights or interests in these matters at no cost to you.

Kirby McInerney LLP is a New York law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the company is available on the Kirby McInerney LLP website: http://www.kmllp.com.

This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.

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