Securities
Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses
Exceeding $100,000 In Cloopen To Contact Him Directly To Discuss Their Options
NEW YORK - 
(NewMediaWire) - February 07, 2022 - Faruqi &
Faruqi, LLP, a leading national securities law firm, is investigating potential
claims against Cloopen Group Holding Limited (“Cloopen” or the “Company”) (NYSE:
RAAS) and reminds investors of the February 8, 2022 deadline to seek the role
of lead plaintiff in a federal securities class action that has been filed
against the Company.
If
you suffered losses exceeding $100,000 investing in Cloopen stock or options
between February 9, 2021 and May 10, 2021 and would like to discuss your
legal rights, call Faruqi
& Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional
information: www.faruqilaw.com/RAAS.
There
is no cost or obligation to you.
Faruqi &
Faruqi is a leading minority and Woman-owned national securities law firm with
offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit
focuses on whether the Company and its executives violated federal securities
laws by making false and/or misleading statements and/or failing to disclose
that: (1) Cloopen’s “land and expand” strategy was failing and its customer
base deteriorating; (2) the Company’s dollar-based net retention rate was not
“stable,” but rather had dropped significantly by the end of 2020; (3) at the
time of the IPO, an increasing number of customers were not paying Cloopen for
the services and/or solutions it provided, forcing Cloopen to recognize massive
increases in its accounts receivable and its allowance for doubtful accounts;
(4) because Cloopen had valued certain warrants at extremely low levels, the
Company would recognize massive additional costs associated with those
warrants; and (5) as a result, Defendants’ positive statements about the Company’s
business, operations, and prospects were materially misleading and/or lacked a
reasonable basis at all relevant times.
In February 2021, Cloopen
conducted its IPO, selling 23 million ADSs at $16 per ADS.
On March 26, 2021, Cloopen
released its 2020 fourth quarter financial results for the period ending
December 31, 2020 – more than a month before the IPO. Cloopen reported revenues
of $39.6 million, $2 million short of analysts’ consensus, as well as net
losses of $46.8 million (a 466.9% year-over-year increase), and operating
expenses of $27.6 million (a 30% year-over-year increase).
On this news, Cloopen’s
shares fell $14.42, or 18.5%, to close at $11.75 per ADS on March 26, 2021.
On May 10, 2021, Cloopen
filed its 2020 annual report, revealing that its dollar-based net customer
retention rate for recurring solutions fell from 102.7% in 2019 to 86.8% in
2020, which meant that Cloopen’s purportedly “loyal” customer base was not
“expand[ing]” into additional solutions and the Company’s growth strategy was
not effective.
On this news, Cloopen’s
shares closed at $8.97 per ADS on May 12, 2021. Since the IPO, Cloopen’s ADSs
have traded as low as $2.70 per ADS, an 80% decline from the $16 IPO price.
The court-appointed lead
plaintiff is the investor with the largest financial interest in the relief
sought by the class who is adequate and typical of class members who directs
and oversees the litigation on behalf of the putative class. Any member of the
putative class may move the Court to serve as lead plaintiff through counsel of
their choice, or may choose to do nothing and remain an absent class member. Your
ability to share in any recovery is not affected by the decision to serve as a
lead plaintiff or not.
Faruqi & Faruqi, LLP also
encourages anyone with information regarding Cloopen’s conduct to contact the
firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law
firm responsible for this advertisement is Faruqi & Faruqi, LLP
(www.faruqilaw.com). Prior results do not guarantee or predict a similar
outcome with respect to any future matter. We welcome the opportunity to
discuss your particular case. All communications will be treated in a
confidential manner.
View the original release on www.newmediawire.com
