Dada Nexus Ltd DADA

PHILADELPHIA, March 6, 2024 /PRNewswire/ -- Berger Montague announces that a class action lawsuit was filed in the U.S. District Court for the Central District of California on behalf of those who acquired Dada Nexus Limited ("Dada") (NASDAQ: DADA) securities.

If you suffered losses as a result of your investment in Dada (NASDAQ: DADA) and would like to learn about a potential recovery, CLICK HERE.

The lawsuit has been filed against Dada on behalf of purchasers of Dada's securities between May 11, 2023 and January 8, 2024, inclusive (the "Class Period").

The deadline for investors who purchased or acquired Dada securities during the Class Period to seek to be appointed as a lead plaintiff representative of the class is March 11, 2024. 

On December 19, 2023, Dada issued a press release announcing that two of the Company's most senior personnel, the Chairman of the Board and the Chief Financial Officer, were stepping down immediately due to "personal reasons."

The lawsuit alleges that the truth was revealed on January 8, 2024, before market hours, when Dada issued a press release on a Form 6-K, which stated, in relevant part, "in the course of its routine internal audit, certain suspicious practices were identified that may cast doubt on certain revenues from [Dada]'s online advertising and marketing services in 2023." The press release further stated that Dada "currently estimates that approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs may have been overstated, respectively, for the first three quarters of 2023. In addition, the revenue guidance previously provided by [Dada] for the fourth quarter and full year of 2023 should no longer be relied upon until further notice." The complaint alleges that upon information and belief, Mr. Xin's and Defendant Chen's departure was the result of the restatement.

Following this news, the price of Dada's American Depositary Receipts fell $1.45 per share, or 45.87%, to close at $17.12 per share, on January 8, 2024.

For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015 or CLICK HERE. 

A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.

Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net

Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net 

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SOURCE Berger Montague