Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Waterdrop Inc. (“Waterdrop”) (NYSE: WDH) American Depositary Shares (“ADSs”) pursuant and/or traceable to Waterdrop’s initial public offering (the “IPO”) on or around May 2021.
The complaint alleges that, in the Registration Statement, Defendants 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.
Current Status of Case:
On February 3, 2023, the Court granted Defendants’ Motion to Dismiss. Lead Plaintiff appealed the Court’s dismissal to the United States Court of Appeals for the Second Circuit. The Second Circuit affirmed the District Court's Order on February 6, 2024. This action has concluded.
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