RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a class action lawsuit has been filed against Waterdrop Inc. (NYSE: WDH) (“Waterdrop”), charging the company with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to its May 2021 initial public offering (the “IPO”). Consequently, while investors who purchased Waterdrop’s American Depository Shares (“ADSs”) in or traceable to the IPO have incurred significant losses, the complaint alleges that Waterdrop’s illicit behavior generated hundreds of millions of dollars in gross proceeds for the defendants.
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CLICK HERE TO SUBMIT YOUR WATERDROP LOSSES
LEAD PLAINTIFF DEADLINE: November 15, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at email@example.com
WATERDROP’S ALLEGED MISCONDUCT
Waterdrop operates an insurance technology platform and is based in Beijing, China. On May 6, 2021, a registration statement (the “Registration Statement) on a Form F-1 for the IPO filed by Waterdrop was declared effective. The complaint against Waterdrop alleges that the Registration Statement failed to disclose that Waterdrop was engaged in a variety of market abuses used to artificially inflate Waterdrop’s short-term financial results in the lead-up to the IPO, including: (1) operating insurance platforms without proper governmental authorizations; (2) mispricing risks for consumers; and (3) illicitly using client information.
On September 13, 2021, the day before the complaint was filed, Waterdrop ADSs dropped to a low of just $3 per ADS, 75% below the $12 per ADS price in the IPO.
WHAT CAN I DO?
Waterdrop investors may, no later than November 15, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer& Check, LLP encourages Waterdrop investors who have suffered significant losses to contact the firm directly to acquire more information.
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WHO CAN BE A LEAD PLAINTIFF?
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 affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.