Chinese ride-hailing giant Didi Global is being sued by US shareholders after a crackdown by Beijing triggered a slump in its share price. The lawsuit

Chinese ride-hailing firm Didi sued in US as shares slide

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2021-07-08 05:00:01

Chinese ride-hailing giant Didi Global is being sued by US shareholders after a crackdown by Beijing triggered a slump in its share price.

The lawsuits, which were filed in federal court in New York and Los Angeles on Tuesday, say Didi failed to disclose ongoing talks it was having with Chinese authorities about its compliance with cybersecurity laws and regulations.

The complaints named Didi's chief Executive officer Will Wei Cheng and several other executives and directors. The lead underwriters for the company's share sale - Goldman Sachs, Morgan Stanley and JPMorgan Chase - were also named as defendants.

China's Cyberspace Administration of China (CAC) announced on 2 July that it had begun to investigate Didi which had launched its US IPO days earlier.

The firm, which saw its market value fall by around $15bn (£10.9bn) on Tuesday alone, had the second-biggest ever US initial public offering (IPO) for a Chinese company, as it raised $4.4bn.