Business course

INVESTOR RAAS ALERT: February 8, 2022 Deadline for filing a class action suit – Contact Lieff Cabraser

SAN FRANCISCO – (COMMERCIAL THREAD) – The law firm Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been filed on behalf of investors who have purchased or otherwise acquired the securities of Cloopen Group Holding Limited (“Cloopen” or the “Company”) (NYSE: RAAS) between February 9, 2021 and May 10, 2021 inclusive (the “Recourse Period”) and / or in accordance with and / or traceable to the registration statement and prospectus (collectively “Registration Statement”) issued in connection with the Company’s initial public offering (“IPO”) in February 2021 of American Depositary Shares (“ADS”).

If you have purchased or otherwise acquired Cloopen Securities during the Class Period or as part of the IPO, you may propose the court’s appointment as the Principal Plaintiff no later than February 8, 2022. A Principal Plaintiff is a representative party acting on behalf of another group. members to lead litigation. Your share of any recovery in the actions will not be affected by your decision whether or not to seek appointment as lead applicant. You can retain the services of Lieff Cabraser or other lawyers as counsel in action.

Cloopen investors who wish to learn more about the litigation and how to apply for an appointment as lead plaintiff should click here, or email [email protected], or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.

Context of the Cloopen Securities group dispute

Cloopen, incorporated and based in China, claims to be the largest provider of multi-capacity cloud communications solutions in China.

The action alleges (1) that the registration statement distorted the fact that the company’s growth strategy was effective while failing to disclose that Cloopen was losing a large number of its existing customers; (2) the registration statement did not reveal that an increasing number of Cloopen customers were refusing to pay, resulting in a record increase in Cloopen’s accounts receivable and the allowance for bad debts; and (3) that the registration statement did not indicate that Cloopen was burdened with massive fair value obligations of certain recently granted warrants.

On March 26, 2021, roughly six weeks after Cloopen’s IPO, the company reported disappointing fourth quarter 2020 revenue of just $ 39.6 million, $ 2 million lower than analysts’ consensus estimates. , net losses of $ 46.8 million, an increase of 466.9% year-over-year. and operating expenses of $ 27.6 million, a 30% increase from the fourth quarter of 2019. Cloopen said its net losses were due to a “change in the fair value of bond liabilities. subscription of. . . US $ 34.4 million ”and attributed the 59.2% increase in general and administrative expenses to“ an increase in the allowance for doubtful accounts resulting from the increase in trade receivables ”. On this news, Cloopen’s ADS price fell $ 2.67, or 18.5%, from its closing price of $ 14.42 on March 25, 2021, to close at $ 11.75 by ADS on March 26, 2021, on high trading volume.

On May 10, 2021, after the market closed, Cloopen announced that its net loyalty rate in dollars for the solutions offered on a recurring basis had increased from 102.7% in 2019 to 86.8% at the end of 2020, and that the fair The value of the Series F convertible redeemable preferred shares underlying the Series F warrant of the Company, issued and exercised before the IPO, was $ 5.50 per share as at December 31, 2020. Following this news, the price Cloopen’s ADS fell 6.47% from its May 10, 2021 closing price of $ 9.59, to close at $ 8.97 per ADS on May 12, 2021.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing investor rights and promoting corporate accountability business.

The national law review recognized Lieff Cabraser as one of the best law firms in the country for fourteen years. In making the list, the National Law Review reviews recent verdicts and settlements and searches for companies “representing the best qualities of the Complainant Bar and who have demonstrated unusual dedication and creativity.” Law360 selected Lieff Cabraser as one of the top 50 law firms nationwide for litigation, underscoring the “laser focus” of our firm and noting that our firm regularly finds itself “facing some of the firms. most important and strong defense lawyers in the world ”. Benchmark Litigation named Lieff Cabraser one of the “10 Best Complainant Firms in America”.

For more information on Lieff Cabraser and the firm’s investor representation, please visit

This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.

Source link