Didihas been accused of misleading investors in two class action lawsuits in the US, with one arguing that the ride-hailing giant did not disclose a warning from China’s internet regulator to delay its New York IPO until it had reviewed its network security, reported Caixin.
The claim, which if proven could put the Chinese firm in breach of US IPO disclosure rules, further complicates the impact of Beijing’s national security crackdown on Didi’s domestically dominant ride-hailing app, Didi Chuxing.
The lawsuit filed by Glancy Prongay and Murray LLP alsoargues that Didi misled investors by not disclosing that its platform was collecting personal data in breach of Chinese laws and regulations before listing last week. It follows the submission of a similar class action suit earlier on Tuesday by Rosen Law Firm.
Both suits contend that Didi’s statements about its business, operations and prospects prior to its IPO last week were therefore “materially false and misleading” and caused those who invested in its securities to lose money.