NEW YORK, NY / ACCESSWIRE / September 28, 2022 / Labaton Sucharow, a nationally ranked and award-winning shareholder rights firm, announces a securities class action lawsuit has been filed against Dingdong (Cayman) Ltd. ("Dingdong" or the "Company") (NYSE:DDL) its U.S. representatives, certain Dingdong directors and officers and the underwriters of the Dingdong's June 2021 initial public offering ("IPO"), alleging violations of 11, 12 and 15 of the Securities Act, 15 U.S.C. 77k, 77l(a)(2), and 77o.
Dingdong purports to be a leading and the fastest growing on-demand e-commerce company in China. Dingdong's mission is to "make fresh groceries as available as running water to every household."
According to the complaint filed in the Southern District of New York, the registration statement and prospectus used to effectuate the Company's IPO misstated and/or omitted facts concerning Dingdong's so-called commitment to ensuring the safety and quality of the food it distributes to the market. For example, despite claiming that it applies "stringent quality control across [its] entire supply chain to ensure product quality to [its] users," Dingdong sold food past its sell-by date. Consequently, Dingdong was, in fact, no better at providing or assuring access to "fresh" groceries than the supermarkets, traditional Chinese wet markets, or traditional e-commerce platforms it repeatedly claimed to be displacing. Moreover, the foregoing conduct subjected Dingdong to an increased risk of regulatory and/or governmental scrutiny and enforcement, all of which, once revealed, were likely to (and did) negatively impact Dingdong's business, operations, and reputation. In fact, as the truth about Dingdong's business and its failure to meet its self-imposed food safety responsibilities reached the market, the value of the Company's shares declined dramatically. By the commencement of the action, Dingdong's shares traded as low as $2.51 per ADS, representing a decline of over 89% from the $23.50 IPO offering price.
The Lead Plaintiff deadline in this action is October 24, 2022.
If you purchased Dingdong American Depository Shares ("ADS") pursuant and/or traceable to the Company's IPO on or about June 28, 2021, please contact David J. Schwartz using the toll-free number (800) 321-0476, via email at [email protected], or by filling out this form.
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David J. Schwartz
SOURCE: Labaton Sucharow LLP