NYSE: RASS Investor Notice: Lawsuit against Cloopen Group Holding Limited announced by the Shareholders Foundation
SAN DIEGO, CA, December 14, 2021 (Newswire.com) - The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in Cloopen Group Holding Limited (NYSE:RAAS) shares.
Investors who purchased in excess of $2000,000 in shares of Cloopen Group Holding Limited (NYSE:RAAS) have certain options and there are short and strict deadlines running. Deadline: February 8, 2022. Those NYSE:RAAS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779-1554.
The plaintiff claims that the Registration Statement that was filed in connection with the Company's February 2021 the initial public offering ("IPO") led Cloopen Group Holding Limited ADS purchasers to believe that the Company's much-touted growth strategy, which relied upon cross-selling, up-selling, optimizing existing solutions, and developing new features, was effective. Indeed, as portrayed in the Registration Statement, the complaint alleges that Cloopen Group Holding Limited appeared to be retaining and even expanding its customer base, as well as maintaining its key sales metrics such as dollar-based net retention rate, which reflected its ability to increase existing customer revenue. The plaintiff says that in reality Cloopen Group Holding Limited's growth strategy was allegedly not working, and its existing customers were abandoning the Company.
The plaintiff further alleges that the Registration Statement failed to disclose that an increasing number of Cloopen Group Holding Limited's customers were refusing to pay, forcing the Company to record massive increases in its accounts receivables and allowance for doubtful accounts. The Registration Statement also allegedly failed to disclose that Cloopen Group Holding Limited was weighed down by huge liabilities related to the fair value of certain recently-granted warrants.
The complaint further alleges that thereafter Cloopen Group Holding Limited's most senior officers continued to make materially false and misleading statements to the market and failed to reveal the true extent of Cloopen's troubles.
The plaintiff claims that in the March 26, 2021 earnings announcement and investor conference call, Cloopen Group Holding Limited's senior executives continued to misrepresent the Company's expansion strategy, again failing to acknowledge that the strategy was failing and its existing customer base was deteriorating; nor did they disclose that Cloopen's dollar-based net retention rate had tumbled in 4Q 2020.
The plainitff alleges that weeks later, as Cloopen Group Holding Limited belatedly revealed additional facts about its failed growth strategy and withering customer base, including that its dollar-based net retention rate by year end 2020 fell far below historical periods.
Those who purchased Cloopen Group Holding Limited (NYSE:RAAS) shares should contact the Shareholders Foundation, Inc.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.
SOURCE: Shareholders Foundation, Inc.
Source: Shareholders Foundation, Inc.
