US investors sue Didi over plunging share price

After being under fire by regulators in China, Didi Chuxing is now being targeted by angry investors in the US. Two groups are filing complaints against the ride-hailing service in New York and Los Angeles. Dozens of law firms want in on the potential business of compensation for alleged stock market fraud. Didi had gone public in New York in early July. Just days after, China’s Internet regulator had demanded significant changes to the company’s privacy practices and pulled Didi’s app from stores until the problems were fixed. As a result, initial stock prices had collapsed (China.Table reported). Didi’s stock lost about a quarter of its value. Investors now claim they have been deceived by the company’s false promises.