DADA - Cloopen Closes The Book On Fraud Case Looks To Rebuild

2024-02-19 02:10:00 ET

Summary

• The SEC charged cloud services provider Cloopen with falsifying revenue, but also praised it for cooperating with its investigation into the matter.
• The company announced a major board overhaul in December, but faces a long road in its rebuilding effort due to stiff competition and China’s slowing economy.
• Cloopen’s settlement is probably too fresh to think about a potential relisting just yet, and the company has said it is still determining its next step.

It was one of China’s last major IPOs in New York before the current freeze, raising $320 million in a February 2021 New York listing on big hopes for China’s cloud services market.

But what started as a drizzle with so-so financial results quickly turned into a downpour onto shares of Cloopen Group Holding Ltd. ( RAASY ) after its May 2022 disclosure of up to 30 million yuan ($4.2 million) in fake sales on its books....

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