WDH Investors Have Opportunity to Lead Waterdrop Inc. Securities Lawsuit
Investors in Waterdrop Inc. (NYSE: WDH) can lead a securities class action lawsuit due to significant losses following the company's May 2021 IPO. Allegations include failures to disclose illicit revenue growth methods, a government order to shut down its mutual aid platform, and ongoing investigations for regulatory violations. Furthermore, the company's operating losses surged over four-fold in Q1 2021, increasing financial strain. The lead plaintiff deadline is set for November 15, 2021. Investors are encouraged to contact the Law Offices of Howard G. Smith for legal consultation.
- None.
- Significant losses reported by investors since the May 2021 IPO.
- Allegations of achieving revenue through illicit means violating Chinese regulations.
- Government-mandated shutdown of the mutual aid platform due to non-compliance with laws.
- Ongoing investigations by regulatory authorities for violations of Chinese law.
- Operating losses increased over four-fold in Q1 2021, driven by customer acquisition costs and cessation of mutual aid business.
- Misleading registration statement regarding financial metrics and market opportunities.
BENSALEM, Pa., Sept. 29, 2021 /PRNewswire/ -- Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities class action lawsuit against Waterdrop Inc. (NYSE: WDH).
Relevant Period: May 2021 IPO
Lead Plaintiff Deadline: November 15, 2021
Investors suffering losses on their Waterdrop 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.
The complaint filed alleges that Defendants failed to disclose to investors that: (1) Waterdrop had achieved a substantial portion of its historical revenue growth through illicit means that ran afoul of Chinese rules and regulations governing the insurance industry; (2) Waterdrop had been ordered by the Chinese government to shut down its mutual aid platform because of its failure to comply with Chinese law; (3) Waterdrop was under investigation by regulatory authorities for continued violations of Chinese law; (4) as a result of the foregoing, there existed a material undisclosed risk and substantial likelihood that Waterdrop would face severe adverse reactions by regulatory authorities following the IPO; (5) Waterdrop's operating losses had increased more than four-fold in the first quarter of 2021 as a result of the cessation of its mutual aid business and rapidly growing customer acquisition costs; and (6) as a result of the foregoing, the registration statement's representations regarding Waterdrop's historical financial and operational metrics and purported market opportunities did not accurately reflect the actual business, operations, and financial results and trajectory of the Company in the lead up to the IPO, were materially false and misleading, and lacked a factual basis.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, 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.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
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SOURCE Law Offices of Howard G. Smith
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