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Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against Full Truck Alliance Co. Ltd. - YMM for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired Full Truck Alliance Co. Ltd. (“FTA”) (NYSE: YMM) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with FTA’s June 2021 initial public offering (the “IPO”).
 

FTA investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described above, you may no later than September 10, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.


FTA purports to, with its subsidiaries, operate a digital freight platform that connects shippers with truckers to facilitate shipments in the People’s Republic of China (“PRC”). It offers freight listing, matching, and brokerage services and online transaction services, as well as various value-added services. Yunmanman and Huochebang were founded in 2013 and 2011, respectively, and both companies were digital freight platforms in the PRC prior to their merger which created FTA in 2017. 

On May 27, 2021, FTA filed a Registration Statement on a Form F-1, which in combination with subsequent amendments of Forms F-1/A filed pursuant to Rule 424(b)(1), would be used for the IPO.  On June 23, 2021, FTA filed its final prospectus for the IPO on a Form 424B4, which forms part of the Registration Statement. In the IPO, FTA sold approximately 82,500,000 American Depositary Shares (“ADSs”) at $19.00 per ADS.

The complaint alleges that the Registration Statement failed to disclose the specific known concerns and issues with FTA’s practices and apparent non-compliance with relevant technology laws.  Specifically, the Registration Statement failed to disclose FTA’s non-compliance with the relevant regulations or the potential penalties for its non-compliance—including a suspension of new user additions during a cybersecurity review.

The truth was revealed on July 5, 2021, when FTA issued a press release entitled “Full Truck Alliance Announces Cybersecurity Review in China” which announced, in part, that “the Cybersecurity Review Office (“CRO”) of the Cyberspace Administration of China [“CAC”] . . . has initiated a cybersecurity review of FTA’s Yunmanman apps and Huochebang apps. In order to facilitate the review and prevent the expansion of potential risks, these mobile apps are required to suspend new user registration in China during the review period.”

Following this news, FTA’s ADS price fell $1.27 per ADS, or over 6%, to close at $17.75 on July 6, 2021, the next trading day.

The complaint alleges that the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) FTA’s Yunmanman and Huochebang apps would face an imminent cybersecurity review by the CAC; (2) the CAC would require FTA to suspend new user registration; (3) FTA needed to conduct a “comprehensive self-examination of any cybersecurity risks”; (4) FTA needed to “continue to improve its cybersecurity systems and technology capabilities”; and (5) as a result, the defendants’ public statements were materially false and misleading at all relevant times and negligently prepared. 

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

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:  James Maro, Esq. (484) 270-1453; or toll-free at (844) 887-9500; 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.

Please complete this form relating to your transactions for Full Truck Alliance Co. Ltd. (NYSE: YMM) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with FTA’s June 2021 initial public offering (the “IPO”).

You may also contact James Maro, Esq. (484) 270-1453; or toll free at (844) 887-9500; or you may submit your information via email at info@ktmc.com; or you may click here to print a PDF of this form.
 

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# of Shares
Price per Share
 
 
 
Principal Amount
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Series or CUSIP
 
 
 
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of Full Truck Alliance Co. Ltd. - YMM prior to the Class Period?
Are you a current or former employee of Full Truck Alliance Co. Ltd. - YMM?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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