HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Alerts Waterdrop (WDH) Investors to Filing of Securities Class Action, Encourages Investors with Significant Loss to Contact Firm's Attorneys Now
SAN FRANCISCO, Sept. 16, 2021 /PRNewswire/ -- Hagens Berman urges Waterdrop Inc. (NYSE: WDH) investors with significant losses to submit your losses now.
Class Period: May 4, 2021 – Sept. 14, 2021
Lead Plaintiff Deadline: Nov. 15, 2021
Visit: www.hbsslaw.com/investor-fraud/WDH
Contact An Attorney Now: [email protected]
844-916-0895
Waterdrop Inc. (WDH) Securities Class Action:
The complaint alleges that Defendants made misrepresentations and omissions in Waterdrop's May 2021 initial public offering documents, which enabled Waterdrop to raise $360 million in gross proceeds.
Specifically, Defendants failed to disclose that: (i) Waterdrop had revenue growth through illicit methods; (ii) PRC regulators had ordered Waterdrop to shut down its mutual aid platform; (iii) Waterdrop's operating losses had increased significantly as a result of the cessation of its mutual aid business and rapidly growing customer acquisition costs; and (iv) Waterdrop was under investigation for continued violations of Chinese law.
The truth began to emerge on June 17, 2021, when Waterdrop announced disappointing Q1 2021 financial results (i.e., the quarter before the IPO). The Company revealed that its operating expenses ballooned 75%, due largely to the cessation of its mutual aid business and growing customer acquisition costs.
Then, on Aug. 11, 2021, multiple news outlets reported that the PRC regulators had ordered insurance companies to cease improper marketing and pricing practices. Bloomberg reported "[r]egulators have since moved to shutter some operations including mutual aid healthcare platforms operated by Waterdrop."
Finally, on Sept. 8, 2021, Waterdrop reported its operating losses for Q2 2021 continued to accelerate, again blaming the dismal results on a whopping 160% increase in operating costs and expenses compared to Q2 2020.
By Sept. 13, 2021, the price of Waterdrop ADSs closed at $3.01, or roughly 75% below the $12.00 IPO price.
"We're focused on investors' losses and proving Waterdrop's IPO documents concealed known regulatory risks and adverse business trends," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Waterdrop, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Waterdrop should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:[email protected].
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP
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