NEW YORK, NY / ACCESSWIRE / October 4, 2022 / Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Dingdong (Cayman) LTD (“Dingdong” or the “Company”) (NYSE:DDL) and reminds investors of the October 24, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the company.
If you suffered losses exceeding $100,000 investing in Dingdong securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Dingdong’s June 2021 initial public offering (the “IPO”) and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: http://www.faruqilaw.com/DDL.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
According to the complaint filed in the Southern District of New York, the registration statement and prospectus used to effectuate the Company’s IPO misstated and/or omitted facts concerning Dingdong’s so-called commitment to ensuring the safety and quality of the food it distributes to the market. For example, despite claiming that it applies “stringent quality control across [its] entire supply chain to ensure product quality to [its] users,” Dingdong sold food past its sell-by date. Consequently, Dingdong was, in fact, no better at providing or assuring access to “fresh” groceries than the supermarkets, traditional Chinese wet markets, or traditional e-commerce platforms it repeatedly claimed to be displacing. Moreover, the foregoing conduct subjected Dingdong to an increased risk of regulatory and/or governmental scrutiny and enforcement, all of which, once revealed, were likely to (and did) negatively impact Dingdong’s business, operations, and reputation. In fact, as the truth about Dingdong’s business and its failure to meet its self-imposed food safety responsibilities reached the market, the value of the Company’s shares declined dramatically. By the commencement of the action, Dingdong’s shares traded as low as $2.51 per ADS, representing a decline of over 89% from the $23.50 IPO offering price.The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Dingdong’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP
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