Law Offices of Howard G. Smith reminds investors of the upcoming October 24, 2022 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Dingdong (Cayman) Limited (“Dingdong” or the “Company”) (NYSE: DDL) American Depository Shares (“ADSs”) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Dingdong’s June 2021 initial public stock offering (the “IPO”).
Investors suffering losses on their Dingdong 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 firstname.lastname@example.org.
In June 2021, Dingdong conducted its IPO, selling approximately 4.07 million ADSs at $23.50 per ADS.
On March 17, 2022, Beijing News published a report stating that Chinese regulators launched a probe into Dingdong for food safety violations, alleging that the Company “replaced labels on expired vegetables and sold frozen fish products as fresh.”
On this news, Dingdong’s ADS price fell $0.46, or 10.8%, to close at $3.37 per ADS on March 17, 2022, thereby injuring investors.
Since the IPO, the Company’s ADSs have traded as low as $2.51 per share, or 89% below the IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Dingdong was actively flouting its food safety responsibilities, failing to deliver on its stated commitment to provide “fresh” groceries to customers historically disserved by supermarkets, traditional Chinese wet markets, or traditional e-commerce platforms; (2) Dingdong’s quality control measures, which were so heavily touted in the Registration Statement, were, in fact, inadequate, exposing Dingdong to an increased risk of regulatory and/or governmental scrutiny and enforcement; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Dingdong ADSs pursuant and/or traceable to the IPO, you may move the Court no later than October 24, 2022 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. 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 these matters, 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 email@example.com, or visit our website at www.howardsmithlaw.com.
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Law Offices of Howard G. Smith
Howard G. Smith, Esquire