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id: 181, Created by Stan Vick, Scout
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S.D. New YorkCourt
On March 17, 2022, a Beijing News reported that Chinese regulators launched a probe into Dingdong for food safety violations uncovered by the local news. According to the report, Dingdong replaced labels on expired vegetables and sold frozen fish products as fresh.
On this news, the price of Dingdong ADS declined by nearly 11%.
Back in June 2021 the Company conducted IPO and issued approximately 4.07 million ADS to the investing public at $23.50 per ADS. And as the Registration Statement stated, Dingdong “embraced a user-centric philosophy” that is committed to “directly providing users and households . . . fresh produce, meat and seafood, and other daily necessities through a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid.”
In fact, Dingdong sold food past its sell-by date.
Given all the facts, there are suspicions that the Company could grossly violate not only the rights of consumers but also of investors, including those who participated in IPO, who lost about 80% of capital to now.
Failure to Disclose,
Shock Event Date
17 March 2022