Securities Class Action Alert: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the Central District of California against Dada Nexus Limited

Upcoming Lead Plaintiff Deadline is March 11, 2024

NEW YORK, Jan. 23, 2024 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP  ("Wolf   Haldenstein") reminds investors that a federal securities class action has been filed class on behalf of all persons and entities that purchased or otherwise acquired American Depositary Shares ("ADS's") of Dada Nexus Limited (NASDAQ: DADA) between May 11, 2023 and January 8, 2024, both dates inclusive (the "Class Period").

All investors who purchased shares and incurred losses are advised  to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.

If you have incurred losses, you may, no later than March 11, 2024, request that the Court appoint you as the lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights. 

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According to the filed complaint, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that:

• Dada revenues from online advertising, marketing services, and operations and support costs were materially overstated;
• as a result, Dada would need to conduct an independent review to ascertain the financial impact and the scope of suspicious practices that led to overstated revenues and costs; and
• as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On December 19, 2023, the Company announced that the Chairman of the Board Lijun Xin would be stepping down immediately due to personal reasons. 

On January 8, 2024, before the market opened, Dada announced identification of "certain suspicious practices … that may cast doubt on certain revenues from the Company's online advertising and marketing services in 2023."  Accordingly, the Company estimated "that approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs may have been overstated, respectively, for the first three quarters of 2023."  The Company also announced that the revenue guidance provided by the Company for the fourth quarter and full year 2023 should no longer be relied upon.   

On this news, the price of Dada's ADS's fell $1.45 per share or 45.87% to close at $2.01 per share on January 8, 2024. 

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas, and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected] or [email protected]  
Tel: (800) 575-0735 or (212) 545-4774

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP