Didi Investors Get Class Status in Pre-IPO China Compliance Suit

Didi Global Inc. must battle investor class allegations it hid cybersecurity compliance issues that drew scrutiny from Chinese regulators in its short-lived US market debut.

Judge Lewis A. Kaplan certified a class of those who got American Depositary Shares in the 2021 IPO, adopting a magistrate judge’s recommendation to cull some class allegations in the US District Court for the Southern District of New York. The suit says ADS prices plummeted as Chinese regulators issued and threatened punishments against the ride-hailing company in the IPO’s wake.

Magistrate Judge Valerie Figueredo suggested he grant class status on claims under the act ...