Kanzhun Limited

  • Settled

Investigation
07/12/2021

Initial Lawsuit
07/12/2021

Lawsuit Progression
01/04/2022

Settlement
11/07/2022

Investigation

  • Continous Holding
    June 11, 2021 to July 2, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding statements made by Kanzhun in connection with a cybersecurity review in China.

Main Event

Cybersecurity Review

07/05/2021

Company Statement

Kanzhun discloses that it is subject to a cybersecurity review by the Cyberspace Administration of China, following an announcement on their website.

“During the review period, “BOSS Zhipin” app is required to suspend new user registration in China to facilitate the process. The Company will fully cooperate with the PRC government authority during the review process. The Company plans to conduct a comprehensive examination of cybersecurity risks and continue to enhance its cybersecurity awareness and technology capabilities.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$30.52 $36.31 $-5.79 -15.95%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 07/12/2021

This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Kanzhun securities between June 11, 2021 and July 2, 2021, inclusive.

  • Filing Date
    07/12/2021
  • Class Period
    06/11/2021 to 07/02/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    BELL v. Kanzhun Limited et al
  • Docket Number
    2:21-cv-13543
  • Court
    New Jersey District Court
  • Free File
    Complaint

Allegations

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:

(1) Kanzhun would face an imminent cybersecurity review by the CAC;
(2) the CAC would require Kanzhun to suspend new user registration on its BOSS Zhipin app;
(3) Kanzhun needed to “to conduct a comprehensive examination of cybersecurity risks”;
(4) Kanzhun needed to “enhance its cybersecurity awareness and technology capabilities”;
(5) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Defendants

  • Company
    Kanzhun Limited
  • Chief Executive Officer
    Peng Zhao
  • Chief Financial Officer
    Yu Zhang
  • Chief Marketing Officer
    Xu Chen
  • Chief Technology Officer
    Tao Zhang

Lawsuit progression

  • Docket Number
    2:21-cv-13543
  • Court
    New Jersey District Court

Lead Counsel

01/04/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    The Rosen Law Firm, P.A.
  • Lead Plaintiff
    Individual
  • Free File
    Order for lead

Amended Complaint

03/04/2022

This is a class action on behalf of persons or entities who purchased publicly traded Kanzhun American Depository Shares (ADSs) between June 11, 2021 and July 2, 2021, inclusive.

  • Updated Class Period
    06/11/2021 to 07/02/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

05/03/2022

A motion to dismiss was filed with the court.

Settlement

Announce

On 11/07/2022, lead counsel The Rosen Law Firm, P.A. announced a proposed class action settlement.

Preliminary Approval

The court preliminarily approved the settlement on 11/10/2022. The settlement has a total value of $2,250,000 in Cash.

Am I included?

The notice states that you may be included, if you purchased or otherwise acquired the company’s publicly traded common stock during the period from 06/11/2021 to 07/02/2021, inclusive.

What is the estimated recovery?

According to the notice, the estimated average cash recovery per damaged share of common stock will be approximately $N/A per share, before deduction of court-approved fees and expenses. Lead Counsel filed a motion for an award of attorneys’ fees not to exceed 33% of the $2,250,000 and payment of expenses not to exceed $45,000.

How can I file a claim?

For information purposes only, last updated on 11/19/2022. Contact the claims administrator or lead counsel for further information.

Source

[stockdio-historical-chart symbol=”BZ” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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