SHAREHOLDER ALERT: Law firm Pomerantz is investigating claims on behalf of investors in Waterdrop Inc.
New York, New York – (Newsfile Corp. – October 18, 2021) – Pomerantz LLP is investigating claims on behalf of investors of Waterdrop Inc. (“Waterdrop” or the “Company”) (NYSE: WDH). These investors are invited to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The purpose of the investigation is to determine whether Waterdrop and any of its officers and / or directors have engaged in securities fraud or other illegal business practices.
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On or about May 7, 2021, Waterdrop proceeded to its initial public offering (“IPO”), selling 30 million US Depository Shares (“ADS”) at a price of $ 12.00 per ADS and raising approximately 360 million of dollars.
Then, on June 17, 2021, Waterdrop issued a press release announcing the Company’s financial results for the quarter ended March 31, 2021-that is to say, the quarter immediately preceding the IPO. The company said its operating costs and expenses had swelled by more than 75%, or 579.1 million RMB, to 1,343.9 million RMB (205.1 million US dollars). As a result, the company incurred an operating loss for the quarter of 460.6 million RMB (70.3 million US dollars), compared to an operating loss of 111.1 million RMB for the same period of 2020, or a multiplication by more than four. This rapid increase in operating expenses can be explained in large part by the cessation of the Company’s mutual aid activities and the increase in customer acquisition costs.
Then, on September 8, 2021, Waterdrop issued a press release announcing the Company’s financial results for the quarter ended June 30, 2021. The press release stated that Waterdrop’s operating losses continued to accelerate, totaling 815 , 4 million RMB (126.3 million US dollars) for in the quarter, compared to an operating profit of 7.2 million RMB for the same period of 2020. This is again due to a sharp increase in the Company’s operating costs and expenses, the Company’s operating costs and expenses during the quarter increasing by RMB1,081.1 million, or 160.5% year-over-year, to RMB 1,754.7 million (US $ 271.8 million) compared to RMB 673.6 million for the same period of 2020. Since the IPO, Waterdrop’s ADS price has fallen below 3. $ 00 per ADS, which is more than a 75% drop in the offer price.
Pomerantz, with offices in New York, Chicago, Los Angeles and Paris, is recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the Dean of the Class Actions Bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100132