BEIJING, June 14,
2023 /PRNewswire/ -- Cloopen Group Holding Limited
(OTC: RAASY) ("Cloopen" or the "Company") today announced that, on
June 5, 2023, it entered into a
binding term sheet (the "Term Sheet") for the settlement of class
action lawsuits commenced in April
2021 in the New York Supreme Court (captioned
Sonny St. John v. Cloopen Group
Holding Limited et al., Index No. 652617/2021 (N.Y. Sup. Ct.
N.Y. Cnty.)) and in December 2021 in
the United States District Court
for the Southern District of New
York (captioned Dong v. Cloopen Group Holding Limited et
al., Case No. 1:21-cv-10610-JGK-RWL (S.D.N.Y.)), collectively
alleging claims for violations of Sections 11, 12(a)(2) and 15 of
the Securities Act of 1933 and Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934. The Term Sheet requires Cloopen to
pay a total of US$12.0 million in
cash to the plaintiff class, representing approximately 6% of its
cash and cash equivalents as of May 31,
2023 based on unaudited management accounts.
The settlement is subject to certain conditions including
entering into a final settlement agreement, notice to the class
members, and court approval. The parties jointly informed the court
that they hope to be in a position to finalize and file the
preliminary settlement approval and notice documents within
forty-five (45) days from the execution of the Term Sheet.
Mr. Changxun Sun, chairman of the board of directors and chief
executive officer of Cloopen, commented, "We will use our best
efforts to enter into a final settlement agreement and obtain the
necessary court approval. We believe that the full and final
resolution of the class action lawsuits will enable us to focus
more on our daily, ongoing business operations as well as the
pursuit of future developments."
About Cloopen Group Holding Limited
Cloopen Group Holding Limited is a leading multi-capability
cloud-based communications solution provider in China offering a full suite of cloud-based
communications solutions, covering communications platform as a
service (CPaaS), cloud-based contact centers (cloud-based CC), and
cloud-based unified communications and collaborations (cloud-based
UC&C). Cloopen's mission is to enhance the daily communication
experience and operational productivity for enterprises. Cloopen
aspires to drive the transformation of enterprise communications
industry by offering innovative marketing and operational tactics
and SaaS-based tools.
For more information, please visit
https://ir.yuntongxun.com.
Forward-Looking Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Cloopen may also
make written or oral forward-looking statements in its reports
filed with or furnished to the SEC, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Any statements that are not historical facts,
including statements about Cloopen's beliefs and expectations as
well as its financial outlook, are forward-looking statements.
These forward-looking statements are based on Cloopen's current
expectations and involve factors, risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in Cloopen's
filings with the SEC. All information provided in this press
release is current as of the date of the press release, and Cloopen
does not undertake any obligation to update such information,
except as required under applicable law. All forward-looking
statements are qualified in their entirety by this cautionary
statement, and you are cautioned not to place undue reliance on
these forward-looking statements.
For investor
and media inquiries, please contact:
Cloopen Group Holding Limited
Investor Relations
Email: ir@yuntongxun.com
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SOURCE Cloopen Group Holding Limited