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DADA Plummets After Disclosing Approximately $70 Million in Suspicious Revenue and Cost Accounting – Hagens Berman

Hagens Berman, National Trial Attorneys, Encourages Dada Nexus (DADA) Investors with Substantial Losses to Contact Firm’s Attorneys

SAN FRANCISCO, CA / ACCESSWIRE / January 18, 2024 / Hagens Berman urges Dada Nexus Limited (NASDAQ:DADA) investors who suffered substantial losses to submit your losses now.

Class Period: May 11, 2023 – Jan. 8, 2024

Lead Plaintiff Deadline: Mar. 11, 2024

Visit: www.hbsslaw.com/investor-fraud/dada

Contact An Attorney Now: DADA@hbsslaw.com

844-916-0895

Dada Nexus Limited (DADA) Securities Fraud Class Action:

The complaint alleges Dada Nexus misrepresented and concealed that: (1) its revenues from online advertising, marketing services, and operations and support costs were materially overstated; and (2) as a result, it would need to conduct an independent review to ascertain the financial impact and the scope of suspicious practices that overstated revenues and costs.

The truth began to emerge on Dec. 19, 2023, when Dada Nexus announced its Chairman of the Board Lijun Xin and CFO Beck Zhaoming Chen would be resigning immediately. The company claimed both Xin’s and Chen’s departures were due to “personal reasons.”

The true explanation for Xin’s and Chen’s abrupt departures became clear on Jan. 8, 2024, when Dada Nexus announced that it had identified “suspicious practices that may cast doubt on certain revenues from the Company’s online advertising and marketing services in 2023.”

The company also said that it “currently 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 addition, Dada Nexus added, “the revenue guidance previously provided by the Company for the fourth quarter and full year of 2023 should no longer be relied upon[.]”

This news drove the price of Dada Nexus shares crashing $1.445 lower (or down about 45%) on Jan. 8, 2024.

“We are investigating whether Dada Nexus may have intentionally overstated its revenues and understated costs,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Dada Nexus and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Dada Nexus case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Dada Nexus 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 DADA@hbsslaw.com.

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About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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Contact:
Reed Kathrein, 844-916-0895

SOURCE: Hagens Berman Sobol Shapiro LLP

View the original press release on accesswire.com


Disclaimer

This article is for the purposes of solicitation subscriptions for this website. This website expects to generate new advertisement revenue resulting from the distribution of this article. The amount of which is unknown at this time. This website or it’s authors do not own any shares of Dada Nexus Limited (DADA) and does not buy, sell, or trade any shares of (DADA). This article does not provide a professional analysis of a (DADA) financial position. (DADA) financial position and all other information regarding the featured Company should be verified directly with (DADA). Please read our full disclaimer for more detailed information.

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