Case Number: No. 1:21-cv-10610
Practice Area: Securities Fraud & Investor Protection
Case Status: Settled
Court: United States District Court for the Southern District of New York
Berger Montague served as lead counsel in this securities fraud class action on behalf of all persons who (a) purchased or otherwise acquired Cloopen American Depositary Shares (“ADSs”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Cloopen’s February 9, 2021 initial public offering, and/or (b) purchased or otherwise acquired Cloopen securities between February 9, 2021 and May 10, 2021, inclusive. The case is pending in the United States District Court for the Southern District of New York and captioned Dong v. Cloopen Group Holding Limited, et al., No. 1:21-cv-10610 (S.D.N.Y.) (Koeltl, J.).
The lead plaintiff brought strict liability, non-fraud claims under the Securities Act of 1933 and fraud-based claims under the Securities Exchange Act of 1934. The lead plaintiff alleged that the Registration Statement concealed from investors that Cloopen had incurred a massive liability related to the increased fair value of a recently granted Series F Warrant and that the defendants’ representations in the Registration Statement regarding Cloopen’s growth strategy were false and misleading because, as of February 8, 2021, the effective date of the Registration Statement, Cloopen had already lost a material percentage of existing customer business during 4Q 2020, ended December 31, 2020, and had done so at an exponentially increasing rate over the rate reported in the Registration Statement for first nine months of 2020. On March 16, 2023, Judge John G. Koeltl of the Southern District of New York denied entirely the defendants’ motions to dismiss. On June 6, 2023, Berger Montague reached a global settlement of the Cloopen case with a parallel New York State proceeding. As a result, by consent, the federal action was dismissed, and the settlement process is pending in the state court action. Michael Dell’Angelo, Barbara Podell and Andrew Abramowitz of Berger Montague are responsible for this matter.
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About Berger Montague
Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.