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Didi Hit With U.S. Shareholder Suits After China Crackdown

Underwriters Goldman, Morgan Stanley and JPMorgan also sued
Suits claim company failed to warn of Chinese regulator talks

WATCH: Didi Global Inc. shares fell for a third consecutive day as Chinese regulators are considering closing a loophole used by firms listing their shares abroad. (Source: Bloomberg)

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By Chris Dolmetsch

July 7, 2021 at 1:47 PM UTC

Updated on

July 7, 2021 at 4:49 PM UTC

This article is for subscribers only.

Didi Global Inc., its directors and underwriters were hit with two U.S. shareholder suits after a Chinese government crackdown sent the ride-hailing company’s shares plummeting shortly after its June 30 initial public offering.

The company, which lost about $15 billion of market value on Tuesday alone, had the second-largest U.S. IPO for a Chinese firm on record, raising $4.4 billion.