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NEW YORK, September 16, 2021 / PRNewswire / – Pomerantz LLP is investigating claims on behalf of investors in Waterdrop Inc. (“Waterdrop” or the “Company”) (NYSE: WDH). These investors are advised 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.
[Click here for information about joining the class action]
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 by ADS and approximate amount $ 360 million.
Then on June 17, 2021, Waterdrop issued a press release announcing the Company’s financial results for the quarter ended March, 31st, 2021—that is to say, the quarter immediately preceding the IPO. The Company has stated that its operating expenses and expenses have swelled to more than 75%, or RMB 579.1 million, To RMB 1,343.9 million (US $ 205.1 million). As a result, the Company incurred an operating loss for the quarter of 460.6 million RMB (US $ 70.3 million), compared to an operating loss of 111.1 million RMB for the same period of 2020, 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 30th, 2021. The statement said Waterdrop’s operating losses continued to accelerate, totaling 815.4 million RMB (US $ 126.3 million) for the quarter, against an operating result of 7.2 million RMB for the same period of 2020. This is again explained by a sharp increase in the Company’s operating costs and expenses, while the Company’s operating costs and expenses during the quarter increased by RMB 1,081.1 million, or 160.5% year over year, at 1,754.7 million RMB ($ 271.8 million) of RMB673.6 million for the same period of 2020. Since the IPO, Waterdrop’s ADS price has fallen below $ 3.00 by ADS, that is to say a reduction of more than 75% compared to the offer price.
The Pomerantz firm, 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 action bar, Pomerantz was a pioneer in the field of class actions in securities. 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.
CONTACT:
Robert S. Willoughby
Pomerantz srl
[email protected]
888-476-6529 ext 7980
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SOURCE Pomerantz LLP
