SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors Youdao, Inc. – DAO
May 24, 2022
Pomerantz LLP is investigating claims on behalf of investors of Youdao, Inc.. Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 7980.
The investigation concerns whether Youdao and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 5, 2022, Youdao issued a press release “provid[ing] an update on its status under the Holding Foreign Companies Accountable Act (the ‘HFCAA’).” The press release stated, in relevant part, that “[o]n May 4, 2022, the U.S. Securities and Exchange Commission (the ‘SEC’) provisionally named the Company as a Commission-Identified Issuer after the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on April 28, 2022, which included an audit report issued by a public accounting firm that the Public Company Accounting Oversight Board (the ‘PCAOB’) has determined that it is unable to inspect or investigate completely.” The press release advised investors that “[i]n accordance with the HFCAA, if the SEC determines that a company has filed audit reports issued by a registered public accounting firm that cannot be inspected or investigated completely by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit its shares or American depositary shares (the ‘ADSs’) from being traded on a national securities exchange or in the over-the-counter trading market in the United States.”
On this news, Youdao’s ADS price fell $0.67 per share, or 9.24%, to close at $6.58 per share on May 5, 2022.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980