Didi Must Face Class Suit Over China Compliance Issues in IPO

Didi Global Inc., its directors, and underwriters must face allegations they concealed compliance issues and drew scrutiny from Chinese regulators following the ride-hailing company’s 2021 US market debut, US District Court for the Southern District of New York has ruled.

Judge Lewis A. Kaplan rejected Didi’s argument the case should be tossed for failure to state a claim, finding that investors sufficiently allege the company’s management was aware that regulatory sanctions were likely if the company went forward with its initial public offering, flouting directives from the Cyberspace Administration of China.

The plaintiffs, who are holders of Didi’s American ...