Radnor, Pennsylvania, September 19, 2021 / PRNewswire / -Kessler Topaz Meltzer & Check, Law Firm LLP Filed Securities Fraud Class Action united states of america District Court of the Southern District new York On behalf of the person who purchased or acquired Waterdrop for Waterdrop Inc. (NYSE: WDH) (“Waterdrop”) Waterdrop or Traceable American Depositary Receipts (“ADS”) May 2021 Initial public offering (“IPO”).
Deadline reminders: Investors who bought or acquired a Waterdrop ADS during an IPO or who are traceable to an IPO can: Later November 15, 2021Requests to be appointed as the principal representative of the group’s complainants. Contact Kessler Topaz Meltzer & Check, LLP for more information or to find out how to participate in this process. James Maro, Esq. (484) 270-1453; (844) 887-9500 free by email [email protected]; Also Click on https://www.ktmc.com/waterdrop-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=waterdrop
Waterdrop operates an insurance technology platform Beijing, China. To date, Waterdrop has operated three lines of business: (I) An insurance marketplace that connects consumers with health and life insurance products. (ii) Medical crowdfunding. This allows people to donate to those incurring significant medical costs. (iii) Mutual assistance. This has allowed people with more than 100 serious illnesses to share their medical costs. Water drop March 2021, Just before the IPO.
to April 16, 2021, Waterdrop submitted a registration form on the IPO Form F-1. It is after correction May 6, 2021 (“Registration Notification Form”). May 7, 2021, Waterdrop has submitted an IPO prospectus under Form 424B4, which incorporates and forms part of the registration statement. The registration statement was used to sell 30 million Waterdrop ADS to investors. $ 12 For each ADS. The complaint alleges that the registration statement did not reveal that Waterdrop suffered increased losses in the first quarter of 2021 and violated many Chinese laws and regulations governing the insurance industry.
The truth began to appear June 17, 2021, When issuing a press release announcing Waterdrop’s closing quarter financial results March 31, 2021, The quarter carried out before the IPO. Waterdrop has inflated more than 75% in operating costs and expenses, or 579.1 million yuan, NOT. RMB 1,343.9 million (((US $ 205.1 million). As a result, Waterdrop incurred an operating loss in the following quarter. 460.6 million RMB (((US $ 70.3 million), compared to the operating loss 111.1 million yuan Over the same period in 2020 – more than four times more.
Following, August 11, 2021, Several sources of information Chinese The Bank of China and insurance regulators, the Bank of China and the Insurance Regulatory Commission, have ordered insurers to end inappropriate marketing and pricing practices prevalent in the industry and strengthen protection of the user privacy. Has been published. Failure to comply would result in the criminals being “severely punished” by the Chinese authorities.
Ultimately, September 8, 2021, Waterdrop issued a press release announcing the financial results for the closing quarter June 30, 2021..With this release, Waterdrop’s operating losses continue to accelerate, in total. 815.4 million RMB (((US $ 126.3 million) Compared to quarterly operating profit 7.2 million yuan This is also due to the increase in operating expenses and expenses of Waterdrop, which increased the operating expenses and expenses of the company during the quarter as follows: 1,081.1 million yuan, Or 160.5% year-on-year, 1,754.7 million RMB (((US $ 271.8 million) from 673.6 million RMB Same period in 2020.
to September 13, 2021Waterdrop ADS dropped to low the day before the complaint was filed $ 3 Waterdrop ADS by ADS is 75% less than the price sold to investors.
The complaint alleges that the registration statement did not disclose that Waterdrop was involved in the abuse of various marketplaces used to artificially inflate Waterdrop’s short-term financial results leading to an IPO. Make. (2) False risks for consumers. (3) Unauthorized Use of Customer Information. In fact, unbeknownst to investors, Waterdrop shut down the self-help segment because Chinese regulators ordered it to do so.
Water drops Investors Later November 15, 2021, Kessler Topaz Meltzer & Check, LLP, or other attorneys, asking you to be appointed as the principal representative of the class plaintiffs. Alternatively, you can leave class members away and do nothing. The head of the claimant is the representative party acting on behalf of all class members in the conduct of the proceedings. To be appointed as the lead plaintiff, the court must determine that the claims of one class member are typical of the claims of other class members and that the class members correctly represent the class. The possibility of sharing the recovery is not affected by the decision to act as the principal applicant.
Kessler Topaz Meltzer & Check, LLP, will pursue class actions in state and federal courts nationwide, including securities fraud, breach of trustee liability, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP, is the driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors. united states of america And all over the world. The company represents investors, consumers and whistleblowers (private sector who report fraud against the government and share the clawback of the government dollar). The proceedings in this proceeding were not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit: www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (toll free)
To download the multimedia, see the original content. Https://www.prnewswire.com/news-releases/kessler-topaz-meltzer–check-llp-announces-a-securities-fraud-class-action-lawsuit-filed- against -waterdrop-inc-wdh-301379863 .html
Source Kessler Topaz Meltzer & Check, LLP
Kessler Topaz Meltzer & Check Announces Securities Fraud Class Action Against Waterdrop Inc. (WDH) by LLP | Around the Web-Pennsylvania
Source Link Kessler Topaz Meltzer & Check Announces Securities Fraud Class Action Against Waterdrop Inc. (WDH) by LLP | Around the Web-Pennsylvania