RADNOR, Pa., Oct. 9, 2021 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors of Waterdrop Inc. (NYSE: WDH) («Waterdrop») that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired Waterdrop American Depositary Shares («ADSs») in or traceable to Waterdrop’s May 2021 initial public offering (the «IPO»).
Deadline Reminder: Investors who purchased or acquired Waterdrop ADSs in or traceable to the IPO may, no later than November 15, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; via e-mail at email@example.com; or click here.
Waterdrop operates an insurance technology platform and is based in Beijing, China. Waterdrop has historically operated three business segments: (1) an insurance marketplace that matches consumers with health and life insurance products; (2) medical crowdfunding, which enables people to provide donations to people with significant medical costs; and (3) mutual aid, which enabled people suffering from over 100 types of critical illness to spread their medical cost burdens. Waterdrop discontinued its mutual aid segment in March 2021, shortly before the IPO.
On June 17, 2021, Waterdrop issued a press release announcing its financial results for the quarter ended March 31, 2021, the quarter conducted before the IPO. Waterdrop reported that its operating costs and expenses had ballooned over 75%, or RMB579.1 million, to RMB1,343.9 million (US$205.1 million). As a result, Waterdrop suffered an operating loss for the quarter of RMB460.6 million (US$70.3 million), compared with an operating loss of RMB111.1 million for the same period of 2020 – a more than four-fold increase.
On September 13, 2021, the day before the complaint was filed, Waterdrop ADSs dropped to a low of just $3 per ADS, 75% below the price at which Waterdrop ADSs were sold to the investing public.
The complaint alleges that the Registration Statement failed to disclose that Waterdrop was engaged in a variety of market abuses used to artificially inflate Waterdrop’s short-term financial results in the lead up to the IPO, including: (1) operating insurance platforms without proper governmental authorizations; (2) mispricing risks for consumers; and (3) illicitly using client information. Indeed, unbeknownst to investors, the reason that Waterdrop had discontinued its mutual aid segment was because it had been ordered to do so by Chinese regulators.
Waterdrop investors may, no later than November 15, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
View original content to download multimedia:https://www.prnewswire.com/news-releases/shareholder-alert–kessler-topaz-meltzer–check-llp-reminds-shareholders-of-waterdrop-inc-of-securities-class-action-lawsuit-301396351.html
SOURCE Kessler Topaz Meltzer & Check, LLP