We are investigating Fangdd Network Group Ltd. (DUO) (“FangDD” or the “Company”) for potential violations of the federal securities laws.
On or around November 1, 2019, FangDD conducted its initial public offering (“IPO”) of 6 million American Depositary Shares (“ADSs”) priced at $13.00 per ADS. On June 8, 2020, FangDD’s ADS closed at $9.51 per share. Then, on June 9, 2020, FangDD’s ADS closed at $47.06 per share, representing a single-day increase of $37.55 per share, or nearly 400%. On June 10, 2020, FangDD issued a press release stating, in relevant part, that “in light of the increases in the price and trading volume of the Company’s American depositary shares . . . on June 9, 2020, FangDD stated that its policy is not to comment on unusual market activity or speculative matters. The Company cautions investors that the trading price of the Company’s ADSs could be subject to significant volatility for various reasons that are out of the Company’s control.” The price of FangDD’s ADSs fell sharply during intraday trading on June 10, 2020.