Cloopen Group Holding Limited Stock: Berger Montague Investigates Securities Fraud Allegations Against Cloopen Group Holding Limited (NYSE: RAAS); Lead Plaintiff Deadline is February 8, 2022
PHILADELPHIA, January 13, 2022 – Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities of Cloopen Group Holding Limited (“Cloopen” or the “Company”) (NYSE: RAAS) between February 6, 2021 through May 10, 2021 (the “Class Period”).
If you purchased Cloopen securities during the Class Period, would like to discuss Berger Montague’s investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875-3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080 or visit: https://bergermontague.com/cases/cloopen-group-holding-limited-stock-berger-montague-investigates-securities-fraud-allegations-against-cloopen-group-holding-limited-nyse-raas-lead-plaintiff-deadline-is-february-8-2022/.
Whistleblowers: Anyone with non-public information regarding Cloopen is encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Cloopen, based in Beijing, provides cloud-based communications solutions. On February 9, 2021, Cloopen conducted its U.S. initial public offering, selling 23 million American Depositary Shares (“ADSs”) at $16.00 per ADS.
A recently-filed lawsuit accuses Cloopen of misleading investors about its prospects for growth and the state of its customer base. On March 26, 2021 – just six weeks after its IPO – Cloopen released its Q4 2020 results, reporting revenues of only $39.6 million ($2 million short of analyst consensus estimates), as well as a net loss of $46.8 million – which represented a 466% increase in net loss year-over-year. Cloopen blamed a “change in fair value of warrant liabilities of . . . US$34.4 million,” as well as “an increase in the provision for doubtful accounts resulting from increased in accounts receivables.” Following this news, Cloopen’s ADS price fell $2.67 per ADS, or 18.52%, to close at $11.75 per ADS on March 26.
On May 10, 2021, the Company filed its 2020 annual report and revealed for the first time that its customer retention rate had fallen from 102.7% in 2019 to 86.8% by year-end 2020. In response, Cloopen’s ADS price fell 6.47% to close at $8.97 per ADS.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.