NEW YORK, NY / ACCESSWIRE / October 23, 2021 / Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Waterdrop Inc. ("Waterdrop" or the "Company") (NYSE:WDH) American Depositary Shares ("ADSs" or "shares") from May 4, 2021 through September 14, 2021 (the "Class Period"). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Act of 1934.
If you purchased Waterdrop securities, and/or would like to discuss your legal rights and options please visit Waterdrop Inc Shareholder Class Action Lawsuit or contact Rujul Patel toll free at (877) 779-1414 or [email protected]
According to the complaint, Waterdrop's IPO Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) Waterdrop had achieved a substantial portion of its historical revenue growth through illicit means that ran afoul of Chinese rules and regulations governing the insurance industry; (2) Waterdrop had been ordered by the Chinese government to shut down its mutual aid platform because of its failure to comply with Chinese law; (3) Waterdrop was under investigation by regulatory authorities for continued violations of Chinese law; (4) as a result of the foregoing, there existed a material undisclosed risk and substantial likelihood that Waterdrop would face severe adverse actions by regulatory authorities following the IPO; (5) Waterdrop's operating losses had increased more than four-fold in the first quarter of 2021 as a result of the cessation of its mutual aid business and rapidly growing customer acquisition costs; and (6) as a result of the foregoing, the IPO registration statement's representations regarding Waterdrop's historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of the Company in the lead up to the IPO, were materially false and misleading, and lacked a factual basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
In May 2021, Waterdrop completed its initial public offering (the "IPO"), selling 30 million ADSs at $12.00 per share.
On August 11, 2021, multiple news sources reported that China's banking and insurance watchdog, the China Banking and Insurance Regulatory Commission, had issued an order directing insurance companies, including Waterdrop, to cease improper marketing and pricing practices rampant in the industry and enhance their user privacy protections.
On September 8, 2021, Waterdrop announced its financial results for the quarter ended June 30, 2021, noting that operating losses had continued to accelerate due to a sharp increase in the Company's costs and operating expenses. On September 13, 2021, Waterdrop ADSs dropped to a low of $3 per share, losing 75% of the value at which it was sold to the investing public.
If you wish to serve as lead plaintiff, you must move the Court no later than November 15, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Waterdrop securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/waterdropinc-wdh-shareholder-class-action-lawsuit-fraud-stock-440/apply/ or contact Rujul Patel toll free at (877) 779-1414 or [email protected]
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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SOURCE: Bernstein Liebhard LLP