| COMPANY |
Cloopen Group Holding Limited |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
21-cv-10610 |
| JUDGE |
The Honorable John George Koeltl |
| CLASS PERI |
February 9, 2021 - May 10, 2021 |
| SECURITY TYPE |
American Depositary Shares |
Case Background:
This is a federal securities class action on behalf of all persons and entities who purchased or otherwise acquired American Depositary Shares (“ADS”) of Cloopen Group Holding Limited (“Cloopen”) pursuant or traceable to the F-1 registration statement (including all amendments made thereto) and related prospectus on Form 424B4 (collectively, the “Registration Statement”) issued in connection with Cloopen’s February 9, 2021 IPO or who otherwise acquired Cloopen securities between February 9, 2021 and May 10, 2021, inclusive (the “Class Period”).
The complaint alleges that that in the Registration Statement and throughout the Class Period, Defendants failed to disclose that: (1) Cloopen’s “land and expand” strategy was failing and its customer base deteriorating; (2) Cloopen’s dollar-based net retention rate was not “stable,” but rather had dropped significantly by the end of 2020; (3) an increasing number of customers were not paying Cloopen for the services and/or solutions it provided, forcing Cloopen to recognize massive increases in its accounts receivables and its allowance for doubtful accounts, the latter of which reflects Cloopen’s determination that these accounts were uncollectible; and (4) Cloopen had massive additional costs associated with the warrants that needed to be recognized.
Current Status of Case:
There are currently two class actions pending against Cloopen - one in state court and the other in federal court – both of which allege the same claims against Defendants for violations of the federal securities laws by misstating and/or omitting material facts in documents issued in connection with Cloopen’s IPO. On June 6, 2023, the parties advised the federal court that the parties had reached an agreement to settle both the federal and state court class actions. They also advised the federal court that they planned to present the settlement to the state court and the state court has scheduled a Final Settlement Hearing for January 23, 2024. This action is ongoing.
The deadline to file a claim is February 14, 2024. If you have any questions or need further information about this settlement, you may go to the following website, https://cloopensecuritieslitigation.com/, or you can contact the claims administrator, A.B. Data, Ltd. at (866) 778-9470.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.