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DADA.US
id: 1012

Dada Nexus Limited (DADA) False Revenue Numbers Case

C.D. California
Court
2:24-cv-00239
Case number
11 May 2023
Class period Start
08 Jan 2024
Class period End
11 Mar 2024
Lead Plaintiff motion deadline
  • $DADA stockholder filed a claim vs. Dada Nexus for reporting to investors false revenue numbers, which led to their losses.
  • In January, Dada's investigation identified suspicious reporting practices.
  • It sent $DADA flying 45% lower, wiping out $378M+ shareholder value.
On January 8, 2024, Dada Nexus (DADA) disclosed that an internal audit had identified “certain suspicious practices” that “may cast doubt on certain revenues from the Company’s online advertising and marketing services in 2023.”
  • $DADA advised that its previously stated revenue guidance for the fourth quarter and full year of 2023 should “no longer be relied upon.
  • The Company estimated 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.”
On this news, $DADA fell 45.9% and lost $378 million of its market capitalization, seriously damaging shareholders.

Earlier, on December 19, 2023, Dada announced that its Chairman of the Board, Lijun Xin, as well as its CFO, Beck Zhaoming Chen, would both be stepping down from their roles due to personal reasons.

Considering all the facts, investors have reasons to suspect DADA and its former executives of unlawful business practices and reporting false revenue numbers. The first affected investor has already filed the initial claim in the court of C.D. of California.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08 January 2024
Filing date
10 January 2024
Lead Plaintiff Deadline
11 March 2024
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