A lawsuit was filed on behalf of investors in Dingdong (Cayman) Limited (NYSE:DDL) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/08/2022 -- An investor, who purchased shares of Dingdong (Cayman) Limited (NYSE: DDL), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Dingdong (Cayman) Limited in connection with Dingdong's June 2021 initial public offering ("IPO")
Investors who purchased shares of Dingdong (Cayman) Limited (NYSE: DDL) have certain options and for certain investors are short and strict deadlines running. Deadline: October 24, 2022. NYSE: DDL investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Dingdong (Cayman) Limited operates an e-commerce company in China. In late June 2021 Dingdong (Cayman) Limited conducted its IPO selling over 4million ADS at $24.50 per share.
On March 17, 2022, a Beijing News published a report stating that Chinese regulators launched a probe into the Company for food safety violations uncovered by the local news. According to the report, "Dingdong replaced labels on expired vegetables and sold frozen fish products as fresh."
The plaintiff claims that 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.
The plaintiff claims that 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, that, 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, and that 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.
Those who purchased shares of Dingdong (Cayman) Limited (NYSE: DDL) have certain options and should contact the Shareholders Foundation.
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