DiDi Global Inc. investors who say the company misled them about its discussions with Chinese regulators on compliance issues secured a lead plaintiff for their would-be class suit in federal court in New York.
Investors accuse the Beijing-based ride-hailing company of not telling them about regulatory scrutiny that could—and did—get DiDi’s app removed from Chinese app stores. Individual investor Cao Junhong will take on the lead role in pursuing the securities case, the U.S. District Court for the Southern District of New York said.
Cao alleged more than $3.6 million in losses, according to a memo filed in support of her motion for appointment as lead plaintiff. That’s the “largest financial interest in this litigation,” and Cao “otherwise satisfies” the adeqaucy and typicality requirements for a lead plaintiff, Judge Lewis A. Kaplan’s Tuesday order said.
The order consolidated four securities suits against DiDi involving regulatory compliance statement allegations.
Kaplan also approved Cao’s choice of Rosen Law Firm PA as lead counsel.
The case is In re DiDi Glob. Inc. Sec. Litig., S.D.N.Y., No. 1:21-cv-05807, lead plaintiff appointed 10/12/21.