WDH Investors Have Opportunity to Lead Waterdrop Inc. Securities Lawsuit
Glancy Prongay & Murray LLP announces that investors with significant losses from Waterdrop's May 2021 IPO have the opportunity to lead a securities fraud class action lawsuit against the company (NYSE: WDH). The lawsuit alleges Waterdrop misrepresented its business and financial health, claiming its historical revenue growth was achieved through illicit practices and that the Chinese government ordered a shutdown of its mutual aid platform. The deadline for lead plaintiff applications is November 15, 2021.
- None.
- Investors were misled about Waterdrop's revenue growth, which allegedly relied on illicit means.
- The company faced a government order to shut down its mutual aid platform due to non-compliance with Chinese law.
- Waterdrop is under investigation by regulatory authorities for continued violations.
- Operating losses increased more than four-fold in Q1 2021 due to business cessation and rising customer acquisition costs.
- Public statements regarding financial metrics and market opportunities are claimed to be materially false and misleading.
LOS ANGELES, Oct. 28, 2021 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Waterdrop Inc. ("Waterdrop" or the "Company") (NYSE: WDH). The action seeks a recovery for investors that purchased Waterdrop shares following the Company's May 2021 IPO.
Lead Plaintiff Deadline: November 15, 2021
If you wish to serve as lead plaintiff of the Waterdrop lawsuit, you can submit your contact information at https://www.glancylaw.com/cases/waterdrop-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
The complaint filed in the action alleges that the 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.
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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 Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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SOURCE Glancy Prongay & Murray LLP
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