BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Dingdong (Cayman) Limited (“Dingdong” or the “Company”) (NYSE: DDL) American Depository Shares (“ADSs”) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Dingdong’s June 2021 initial public stock offering (the “IPO”). Dingdong investors have until October 24, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Dingdong investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
In June 2021, Dingdong conducted its IPO, selling approximately 4.07 million ADSs at $23.50 per ADS.
On March 17, 2022, Beijing News published a report stating that Chinese regulators launched a probe into Dingdong for food safety violations, alleging that the Company “replaced labels on expired vegetables and sold frozen fish products as fresh.”
On this news, Dingdong’s ADS price fell $0.46, or 10.8%, to close at $3.37 per ADS on March 17, 2022, thereby injuring investors.
Since the IPO, the Company’s ADSs have traded as low as $2.51 per share, or 89% below the IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Dingdong was actively flouting its food safety responsibilities, failing to deliver on its stated commitment to provide “fresh” groceries to customers historically disserved by supermarkets, traditional Chinese wet markets, or traditional e-commerce platforms; (2) Dingdong’s quality control measures, which were so heavily touted in the Registration Statement, were, in fact, inadequate, exposing Dingdong to an increased risk of regulatory and/or governmental scrutiny and enforcement; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Dingdong ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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