Chinese firm Didi sued in the US: What you need to know
Chinese ride-hailing app ‘Didi’ is being sued in the US for not disclosing its communications with Chinese authorities about its compliance with cyber laws and regulations.
This comes after the firm saw a huge drop in its US market value as the news came out about Beijing cracking down on the app. The authorities in China said that the app collected user data illegally. They asked all the smartphone app stores in China to remove the app from their platform.
The complaint in the US was filed in LA and named Didi's chief Executive officer Will Wei Cheng and several other executives and directors. Didi said that they will rectify any problem that the authorities feel they have.
The company made its NYSE debut last week. It saw its value drop by $15 billion on Tuesday alone. The company had the second-biggest IPO for a Chinese firm in the US, where it raised $4.4 billion.
This action by Chinese authorities is in continuations with its efforts to crack down on Chinese firms which are listed in the US. This led to a drop in the value for many Chinese firms which are listed in the US.