Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
03/17/2022
Initial Lawsuit
08/25/2022
Lawsuit Progression
10/24/2022
A Dingdong (Cayman) Limited (DDL) investors filed a securities class action lawsuit on behalf of persons who purchased, or otherwise acquired, Dingdong American depository shares (ADS) pursuant or traceable to the F-1 registration statements (including all amendments made thereto) and related prospectus on Form 424B4 issued in connection with Dingdong’s June 2021 initial public stock offering.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
Excerpt
“In truth, however, at the time of the IPO, Dingdong was actively flouting its food safety responsibilities, failing to deliver on its stated commitment to provide “fresh” groceries to customers historically disserved by supermarkets, traditional Chinese wet markets, or traditional e-commerce platforms. Dingdong’s quality control measures, which were so heavily touted in the Registration Statement, were, in fact, inadequate, exposing Dingdong to an increased risk of regulatory and/or governmental scrutiny and enforcement. Because the Registration Statement misled prospective investors about Dingdong’s commitment to the safety and quality of the food it distributes to the market and failed to disclose the truth about Dingdong’s lack of sufficient and effective quality control policies and procedures, Plaintiff and other ADS purchasers had no opportunity to adequately assess the value of the shares offered in connection with the IPO.
Defendants were required to disclose this material information in the Registration Statement. Item 303 of SEC Regulations S-K, 17 C.F.R. §229.303 imposed an independent duty on Defendants to disclose in the Offering Documents any known trends or uncertainties that have had or that the registrant reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition. As of the IPO and the issuance of the Offering Documents, Defendants were aware, but did not disclose, that Dingdong’s quality control policies and procedures were insufficient and/or ineffective, and that its so-called “uncompromising” commitment to product quality was merely lip-service, utilized to both differentiate the Company from competitors in the intensely competitive e-commerce industry and to warrant a premium IPO offering price.”
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