SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Dada Nexus Limited - DADA

NEW YORK, March 3, 2024

The class action concerns whether Dada and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

You have until March 11, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Dada securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.  

[Click here for information about joining the class action]  

On December 19, 2023, Dada announced that Lijun Xin and Beck Zhaoming Chen would both resign immediately from their respective roles as Chairman of the Company's Board and Chief Financial Officer, citing personal reasons. 

Then, on January 8, 2024, Dada disclosed in a U.S. Securities and Exchange Commission filing "that, in the course of its routine internal audit, certain suspicious practices were identified that may cast doubt on certain revenues from the Company's online advertising and marketing services in 2023."  The Company further stated that "[b]ased on its preliminary assessment, and subject to the findings from the Independent Review as explained below, the Company currently estimates that approximately RMB500 million of revenues from online advertising and marketing services and RMB500 million of operations and support costs may have been overstated, respectively, for the first three quarters of 2023.  In addition, the revenue guidance previously provided by the Company for the fourth quarter and full year of 2023 should no longer be relied upon until further notice."  Accordingly, Dada's board of directors "has determined that it would be in the best interest of the Company and the shareholders to conduct an independent review to ascertain the financial impact and the scope of suspicious practices, if any, and the root cause".