NEW YORK, Feb. 08, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cloopen Group Holding Limited (“Cloopen” or the “Company”) (: RAAS). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Cloopen and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around February 9, 2021, Cloopen conducted an initial public offering (“IPO”) in the United States, selling 23 million American Depositary Shares (“ADSs”) priced at $16.00 per ADS. Then, on March 26, 2021, just over six weeks after its IPO, Cloopen published its 4Q 2020 and FY 2020 financial results. Cloopen reported 4Q 2020 revenues of just $39.6 million, $2 million short of analysts’ consensus, net losses of $46.8 million, representing a staggering 466.9% increase year-over-year, and operating expenses of $27.6 million, representing a 30% increase over 4Q 2019. Cloopen blamed a “change in fair value of warrant liabilities of . . . US$34.4 million” for Cloopen’s remarkable net loss and “an increase in the provision for doubtful accounts resulting from increased in accounts receivables” for the 59.2% increase in general and administrative expenses.
On this news, Cloopen’s ADS price fell $2.67 per ADS, or 18.52%, to close at $11.75 per ADS on March 26, 2021.
Then, on May 10, 2021, after the market closed, Cloopen filed its Annual Report on SEC Form 20-F, revealing for the first time that its dollar-based net customer retention rate for recurring solutions had hemorrhaged from 102.7% in 2019 to 86.8% by year end 2020.
On this news, Cloopen’s ADS price fell $0.62 per ADS, or 6.47%, to close at $8.97 per ADS on May 12, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
