Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Filed Against Cloopen Group Holding Limited

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CLICK HERE TO SUBMIT YOUR CLOOPEN LOSSES

PRINCIPAL COMPLAINANT DEADLINE: February 8, 2022

COURSE PERIOD: February 9, 2021 through May 10, 2021

CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Free (844) 887-9500 or by email at [email protected]

CLOOPEN’S ALLEGED FAULT
Cloopen provides cloud-based communications solutions that enable application programming interfaces and software development kits to integrate messaging, voice calls, audio and video, instant messaging, and other communications in applications, services and / or business processes of companies.

At February 9, 2021, Cloopen proceeded to its initial public offering (“IPO”), selling 23 million US depository shares (“ADS”) to $ 16.00 by ADS. Then on March 26, 2021, Cloopen released its fourth quarter 2020 financial results for the period ending December 31, 2020. Cloopen reported income of only $ 39.6 million ($ 2 million below analyst consensus), as well as net losses of $ 46.8 million (an increase of 466.9% year-over-year) and operating expenses of $ 27.6 million (a 30% increase from the fourth quarter of 2019). In response to his alarming net loss, Cloopen blamed a “change in the fair value of warrants’ liabilities.” . . US $ 34.4 million. “Regarding the 59.2% increase in its general and administrative expenses, Cloopen claimed” an increase in the allowance for doubtful accounts resulting from the increase in trade receivables. “Following this news, the price of the Cloopen’s ADS has gone down $ 2.67 by ADS, i.e. 18.52%, to close at $ 11.75 by ADS on March 26, 2021.

Then on May 10, 2021, Cloopen’s share price fell again when the company filed its 2020 Annual Report and first revealed that its net dollar customer retention rate for recurring solutions fell from 102.7% in 2019 to 86.8% at the end of 2020. Following this news, the price of Cloopen’s ADS has dropped $ 0.62 by ADS, or 6.47%, to close at $ 8.97 by ADS on May 12, 2021.

WHAT CAN I DO?
Cloopen investors can, not later than February 8, 2022, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or other attorney, or may choose to do nothing and remain an absent member of the class. Kessler Topaz Meltzer & Check, LLP encourages Cloopen investors who have suffered significant losses to contact the company directly for more information.

CLICK HERE TO SUBSCRIBE TO THE CASE

WHO CAN BE A PRINCIPAL APPLICANT?
A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the most significant financial interest and who are also suitable and typical for the proposed investor category. The lead plaintiff chooses a lawyer to represent the lead plaintiff and the class and these lawyers, if approved by the court, are the lead or class advocates. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, fault and neglect on the part of businesses and trustees. In the end, we were successful if the bad guys pay and you get your holdings back. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (free call)
[email protected]

SOURCE Kessler Topaz Meltzer & Check, LLP


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