The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Dingdong (Cayman) Ltd. (NYSE: DDL) who purchased American Depository Shares pursuant or traceable to documents issued in connection with Dingdong’s June 2021 initial public stock offering. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the Dingdong lawsuit alleges that the registration statement and prospectus used to effectuate the Company’s initial public offering misstated and/or omitted facts concerning Dingdong’s so-called commitment to ensuring the safety and quality of the food it distributes to the market. For example, despite claiming that it applies “stringent quality control across [its] entire supply chain to ensure product quality to [its] users,” Dingdong sold food past its sell-by date. Consequently, Dingdong was, in fact, no better at providing or assuring access to “fresh” groceries than the supermarkets, traditional Chinese wet markets, or traditional e-commerce platforms it repeatedly claimed to be displacing. Moreover, the foregoing conduct subjected Dingdong to an increased risk of regulatory and/or governmental scrutiny and enforcement, all of which, once revealed, were likely to negatively impact Dingdong’s business, operations, and reputation.
Shareholders have until October 24, 2022 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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