Bronstein, Gewirtz & Grossman, LLC
NEW YORK, December 16, 2021 (GLOBE NEWSWIRE) – Lawyer Advertising – Bronstein, Gewirtz & Grossman, LLC Notifies Investors that a Class Action has been filed against Cloopen Group Holding Limited (âCloopenâ or the âCompanyâ ) (NYSE: RAAS) and certain of its officers, on behalf of shareholders who (a) have purchased or otherwise acquired Cloopen American Depository Shares (âADSâ) in accordance with and / or traceable to the registration statement and prospectus (collectively, the âregistration statementâ) issued in connection with the Company’s initial public offering in February 2021 (the âIPOâ); and / or (b) purchased or otherwise acquired Cloopen securities during the Class Period These investors are encouraged to join this matter by visiting the company’s website: www.bgandg.com/raas.
This class action lawsuit seeks to recover damages against the defendants for alleged violations of federal securities laws under the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934.
The complaint alleges that the registration statement for the IPO was negligently prepared and, therefore, contained substantially false and misleading statements of fact and did not disclose the facts to be disclosed therein under the rules. and regulations governing its preparation. Specifically, the registration statement: (2) led buyers of Cloopen ADS to believe that the company’s much-vaunted growth strategy, which was based on cross-selling, upselling, leveraging existing solutions, and the development of new features was effective. Indeed, as stated in the registration statement, Cloopen appeared to retain and even expand its customer base, as well as maintain its key sales metrics such as net dollar retention rate, which reflected its ability to increase revenue for existing customers. . In truth, Cloopen’s growth strategy was not working and its existing customers were abandoning the company. Unbeknownst to investors, Cloopen’s net retention rate in dollars had fallen during the fourth quarter of 2020 (“4Q 2020”); (2) failed to disclose that an increasing number of its customers were refusing to pay, forcing the Company to record massive increases in its accounts receivable and the allowance for bad debts; and (iii) also failed to disclose that Cloopen was burdened with massive liabilities related to the fair value of certain recently granted warrants.
The complaint further alleges that Cloopen’s top executives continued to make materially false and misleading statements to the market and failed to disclose the true extent of Cloopen’s problems. During the March 26, 2021 earnings announcement and investor conference call, senior Cloopen executives continued to distort the company’s expansion strategy, again failing to acknowledge that the strategy was failing and that its existing customer base was deteriorating. A class action has already been filed. If you would like to review a copy of the complaint, you can visit the firm’s website: www.bgandg.com/raas or you can contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you have suffered a claim in Cloopen, you have until February 8, 2022 to ask the Tribunal to appoint you as the principal claimant. Your ability to participate in any recovery does not require you to serve as the lead applicant.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our main expertise is the aggressive pursuit of contentious claims on behalf of our clients. In addition to representing institutions and other plaintiff investors in security class actions, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Lawyer advertising. Past results do not guarantee similar results.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
212-697-6484 | [email protected]