An investigation on behalf of current long term investors in Waterdrop Inc. (NYSE:WDH) shares over possible breaches of fiduciary duty by certain officers and directors was announced.
San Diego, CA -- (SBWIRE) -- 12/13/2021 -- Certain directors of Waterdrop Inc. are under investigation concerning potential breaches of fiduciary duties.
Investors who are current long term investors in Waterdrop Inc. (NYSE: WDH) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for investors in NYSE: WDH stocks follows a lawsuit filed against Waterdrop Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE: WDH stocks, concerns whether certain Waterdrop Inc. directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges on behalf of investor who purchased Waterdrop Inc. (NYSE: WDH) American Depositary Shares ("ADSs") pursuant and/or traceable to the IPO, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that the IPO's Registration Statement failed to disclose that Waterdrop was the subject of an intense regulatory investigation and pending crackdown by Chinese authorities because of a variety of market abuses perpetrated by Waterdrop used to artificially inflate Waterdrop's short-term financial results in the lead up to the IPO, including, among other things operating insurance platforms without proper governmental authorizations, mispricing risks for consumers; and (iii) illicitly using client information.
The plaintiff further alleges that, unbeknownst to investors, the reason that Waterdrop had discontinued its mutual aid segment was because it had been ordered to do so by Chinese regulators. Furthermore, Waterdrop had suffered rapidly accelerating operating losses in the first quarter of 2021 which was completed weeks before the IPO.
Those who purchased shares of Waterdrop Inc. (NYSE: WDH) have certain options and should contact the Shareholders Foundation.
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