Chinese ride-hailing giant Didi sued by US shareholders
China’s dominant ride-hailing app Didi is facing two lawsuits, filed in New York and Los Angeles. They come a week after Didi’s debut on the New York Stock Exchange.
The two suits, filed on Tuesday, state that Didi failed to disclose ongoing talks it was having with Chinese authorities about its compliance with cybersecurity laws and regulations.
Didi’s chief executive officer, Will Wei Cheng, and several other directors and executives were named in the complaints. Lead underwriters Goldman Sachs, Morgan Stanley and JPMorgan Chase & Co were also included as defendants.
Recent woes
Founded in 2012, the app is particularly popular in China with 20m rides being arranged daily through the app.
A Chinese regulator ordered Didi Chuxing off the country’s app store until further notice. The move came just two days after a cybersecurity review was launched into the company and four days after its blockbusters initial public offering (IPO) in New York.
The firm had the second largest U.S. IPO for a Chinese firm on record, raising $4.4bn dollars.
Didi didn’t immediately respond to a request for comment. Goldman, Morgan and JPMorgan declined to comment on the suit.