Cloopen Group Fails to Knock Out Investors’ Class Suit Over IPO

US investors who purchased shares in Beijing-based cloud service provider Cloopen Group Holding Ltd. have a green light to proceed with securities fraud claims on behalf of a proposed class.

The investors adequately alleged Cloopen made misleading statements, had the necessary level of intent, and failed to fulfill affirmative obligations, Judge John G. Koeltl said Thursday for the US District Court for the Southern District of New York.

• Documents preceding Cloopen’s $340 million initial public offering in February 2021 are the focus of the suit
• The documents allegedly failed to disclose liability associated with a warrant Cloopen issued to Novo ...