China’s Didi Pays $740 Million to Settle Lawsuit Over US IPO

Didi Global Inc., a Chinese ride-hailing company, has agreed to pay a $740 million settlement to resolve a shareholder lawsuit related to its controversial 2021 initial public offering (IPO) in the United States. The lawsuit alleged that Didi failed to disclose important information to investors before its IPO, leading to significant losses when Chinese regulators cracked down on the company shortly after the listing. The $740 million settlement will be recorded as a one-time charge, pushing Didi into a net loss for the period. The settlement represents a significant financial blow to Didi, which has been struggling to regain its footing after facing intense scrutiny from Chinese authorities over data security concerns. The company has been forced to delist from the New York Stock Exchange and shift its focus back to the domestic market. The resolution of this lawsuit marks an important step in Didi's efforts to move past the regulatory issues that have plagued the company and rebuild investor confidence as it navigates the challenging Chinese technology landscape.