- Oops!Something went wrong.Please try again later.
LEAD PLAINTIFF DEADLINE IS NOVEMBER 15, 2021
NEW YORK, Nov. 11, 2021 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors who purchased or otherwise acquired the American Depositary Receipts ("ADR's") of Waterdrop Inc. (NYSE: WDH) ("Waterdrop") in or traceable to Waterdrop's May 2021 initial public offering (the "IPO").
All investors who purchased the ADR's of Waterdrop Inc. and incurred losses are urged to contact the firm immediately at firstname.lastname@example.org 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 in the ADR's of Waterdrop Inc., you may, no later than November 15, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the ADR's of Waterdrop Inc.
On May 7, 2021, Waterdrop filed a prospectus for the IPO on a Form 424B4, which incorporated and formed part of the Registration Statement. The Registration Statement was used to sell to the investing public 30 million Waterdrop ADR's at $12 per ADR. The filed complaint alleges that the Registration Statement failed to disclose that Waterdrop had suffered ballooning losses in the first quarter of 2021 and violated numerous Chinese laws and regulations governing the insurance industry.
The truth began to emerge on June 17, 2021, when Waterdrop issued a press release announcing its financial results for the quarter ended March 31, 2021, the quarter conducted before the IPO. Waterdrop reported that its operating costs and expenses had ballooned over 75%, or RMB579.1 million, to RMB1,343.9 million (US$205.1 million). As a result, Waterdrop suffered an operating loss for the quarter of RMB460.6 million (US$70.3 million), compared with an operating loss of RMB111.1 million for the same period of 2020 – a more than four-fold increase.
Then, on August 11, 2021, multiple news sources reported that China's banking and insurance watchdog, the China Banking and Insurance Regulatory Commission, had issued an order directing insurance companies to cease improper marketing and pricing practices rampant in the industry and enhance their user privacy protections. Failure to comply would reportedly result in the offenders being "severely punished" by Chinese authorities.
Finally, on September 8, 2021, Waterdrop issued a press release announcing its financial results for the quarter ended June 30, 2021. The release stated that Waterdrop's operating losses had continued to accelerate, totaling RMB815.4 million (US$126.3 million) for the quarter, compared with an operating profit of RMB7.2 million for the same period of 2020. This was once again due to a sharp increase in Waterdrop's operating costs and expenses, as the company's operating costs and expenses during the quarter increased by RMB1,081.1 million, or 160.5% year over year, to RMB1,754.7 million (US$271.8 million) from RMB673.6 million for the same period of 2020.
On September 13, 2021, the day before the complaint was filed, Waterdrop ADR's dropped to a low of just $3 per ADR, 75% below the price at which Waterdrop ADR's were sold to investors.
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, via e-mail at email@example.com, or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: firstname.lastname@example.org, email@example.com or firstname.lastname@example.org
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/waterdrop-inc-class-action-alert-wolf-haldenstein-adler-freeman--herz-llp-announces-that-a-securities-class-action-lawsuit-has-been-filed-against-waterdrop-inc-in-the-united-states-district-court-for-the-southern-district-of-n-301422365.html
SOURCE Wolf Haldenstein Adler Freeman & Herz LLP