Lost Money in Dada Nexus? Gibbs Law Group Investigates Potential Securities Law Violations

OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group announces that a class action lawsuit has been filed on behalf of Dada Nexus Limited (NASDAQ: DADA) investors who purchased shares between May 11, 2023 and January 8, 2024. Investors have until March 11, 2024, to apply to be a lead plaintiff in the Dada class action lawsuit.

What Should DADA Investors Do?

If you invested in Dada Nexus Limited, visit our website by clicking here, or call us toll-free at [phone] to discuss how you may be able to recover your losses. If you purchased Dada securities during the Class Period, you may be entitled to potential compensation without paying any out-of-pocket fees or costs.

What is this Lawsuit & Investigation About?

Before the market opened on Monday, January 8, 2024, Dada Nexus revealed that “in the course of its routine internal audit, certain suspicious practices were identified that may cast doubt on certain revenues from the Company’s online advertising and marketing services in 2023.” According to Dada, the company “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 its January 8^th filing, Dada added that previous revenue guidance for the fourth quarter and full year of 2023 should no longer be relied upon.

The lawsuit alleges that the defendants “made false and/or misleading statements and/or failed to disclose that: (1) Dada revenues from online advertising, marketing services, and operations and support costs were materially overstated; (2) as a result, Dada would need to conduct an independent review to ascertain the financial impact and the scope of suspicious practices that led to overstated revenues and costs; and (3) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.”

Dada stock plummeted over 36% in intraday trading on January 5th, and continued to drop over the following days, causing significant harm to investors.

About Gibbs Law Group

Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”

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