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 in the Registration Statement and throughout the Class Period, the defendants failed to disclose to investors 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:
The Court entered an order closing the case on June 6, 2023, after the parties reported reaching a settlement that included this action as well as the similar state court action. The Order and Final Judgment was entered in the state court action on January 23, 2024. This action has concluded.
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.