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Full Truck Alliance (YMM) Cybersecurity $10.25M Investor Settlement

E.D. New York
Court
1:21-cv-03903
Case number
22 Jun 2021
Class period Start
02 Jul 2021
Class period End
Full Truck Alliance (YMM) agreed to settle $10.25 million with investors to end claims over not disclosed cybersecurity setbacks.
  • On July 5, 2021, Full Truck Alliance announced a cybersecurity review, leading to a more than 6% $YMM drop.
  • FTA was accused of misleading an upcoming cybersecurity review by the CAC for its apps.
  • FTA agreed to pay $10.25M to investors to resolve the claims due to this case.
The Full Truck was accused of not revealing to investors about an upcoming cybersecurity review in China for their apps (Yunmanman and Huochebang).

The review required them to stop new user registrations and improve their cybersecurity systems.

When this was finally disclosed, $YMM dropped by over 6%, leading to the lawsuit.

FTA has now decided to resolve all the allegations and pay a $10.25M settlement.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Filing date
12 July 2021
Plaintiffs
Pratyush Kohli
Attorneys
The Rosen Law Firm, P.A.
Defendants
Peter Hui Zhang, Simon Chong Cai, Shanshan Guo, Guizhen Ma, Wenjian Dai, Richard Weidong Ji, Jennifer Xinzhe Li, Colleen A. De Vries
Judge
Hon. LaShann DeArcy Hall
Settlement agreement date
2023-09-20
Class wide damages
$265,650,000
Trades matching type
FIFO
+$10,250,000
Total Settlement Amount
Created by Polina Foster, Scout

Full Truck Alliance Co Ltd ADR

Full Truck Alliance Co. Ltd., together with its subsidiaries, operates a digital freight platform that connects shippers with truckers to facilitate shipments across distance ranges, cargo weights,...

    Ticker
    YMM.US
    ISIN
    US35969L1089
    CIK
    1838413
    Sector
    Technology
    Industry
    Software - Application
    Country
    USA
    Address
    6 Keji Road, Guiyang, China, 550025