Archived Investigations
Dada Nexus Limited (NasdaqGS: DADA)
Dada Nexus and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 8, 2024, pre-market, the Company disclosed that “certain suspicious practices were identified that may cast doubt on certain revenues from the Company’s online advertising and marketing services in 2023,” specifically estimated to include “approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs [that] may have been overstated, respectively, for the first three quarters of 2023.” Further, the Company stated that “the revenue guidance previously provided by the Company for the fourth quarter and full year of 2023 should no longer be relied upon until further notice.”
On this news, the price of Dada’s American Depositary Receipts plummeted approximately 45%, to close at $17.12 per share, on January 8, 2024.
The case is Wang v. Dada Nexus Limited, et al., No. 24-cv-00239.