CLICK HERE TO SUBMIT YOUR CLOOPEN LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE INTO YOUR BROWSER: https://www.ktmc.com/cloopen-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=cloopen
PRINCIPAL APPLICANT DEADLINE: February 8, 2022
COURSE PERIOD: February 9, 2021 through May 10, 2021
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Free (844) 887-9500 or by email at [email protected]
CLOOPENS ALLEGED MISCONDUCT
Cloopen provides cloud-based communication solutions that enable application programming interfaces and software development kits to integrate messaging, voice calls, audio and video, instant messaging and others communications in enterprise applications, services and/or business processes.
At February 9, 2021Cloopen completed its initial public offering (“IPO”), selling 23 million American Depositary Shares (“ADS”) to $16.00 by ADS. Then, on March 26, 2021Cloopen has released its fourth quarter 2020 financial results for the period ending December 31, 2020. Cloopen recorded revenues of only $39.6 million ($2 million below analyst consensus), as well as net losses of $46.8 million (a 466.9% year-over-year increase) and operating expenses of $27.6 million (an increase of 30% compared to the fourth quarter of 2019). In response to its alarming net loss, Cloopen blamed a “change in the fair value of… $34.4 millionRegarding the 59.2% increase in its general and administrative expenses, Cloopen claimed “an increase in the provision for bad debts resulting from the increase in trade receivables.” Following this news, the price of Cloopen’s ads dropped $2.67 per ADS, i.e. 18.52%, to close at $11.75 by ADS on March 26, 2021.
Then, on May 10, 2021Cloopen’s share price fell again as the company filed its 2020 annual report and revealed for the first time that its net dollar customer retention rate for recurring solutions had fallen from 102.7% in 2019 to 86.8% at the end of 2020. Following this news, the ADS price of Cloopen fell $0.62 per ADS, i.e. 6.47%, to close at $8.97 by ADS on May 12, 2021.
WHAT CAN I DO?
Cloopen investors can not later than February 8, 2022seek to be appointed as the lead plaintiff representing the class through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Cloopen investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE TO REGISTER FOR THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the category of investors proposed. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP pursues class action lawsuits in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. In the end, we were successful if the bad guys pay and you get your assets back. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on 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, Pennsylvania 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP