NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States Supreme Court for the County of New York on behalf of investors that purchased Full Truck Alliance Co. Ltd. (NYSE: YMM) securities pursuant or traceable to the Company’s initial public offering, which commenced on or about January 23, 2021 (the “IPO” or “Offering”). Investors have until September 6th, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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Based in China, defendant Full Truck Alliance claims to operate the world’s largest online platform for commercial trucking and freight services. The Company claims to “have transformed China’s road transportation industry by pioneering a digital, standardized and smart logistics infrastructure across the value chain.” The Company’s proprietary platform connects shippers with truckers to facilitate shipments across distance ranges, cargo weights and types.

Full Truck Alliance uses its online platform and mobile phone app to generate revenues in a variety of ways. These include charging membership fees to frequent shippers which allow paying shippers to post more shipping orders to the Company’s digital platform. The Company also offers freight brokerage services, whereby the Company provides end-to-end freight matching services between shippers and truckers in exchange for a fee. The Company also charges online transaction service fees on certain transactions and offers a range of add-on services such as, inter alia, credit services, insurance solutions and transportation management. For fiscal 2019, over 70% of Full Truck Alliance’s revenues came from its freight matching services.

In the lead up to the IPO, Full Truck Alliance claimed to have experienced tremendous growth. A key metric followed by investors was the Company’s active shippers in a given month, known as “shipper MAUs.” The Company claimed to have tripled its monthly average shipper MAUs from 410,000 in the quarter ended March 31, 2019 to 1.22 million for the quarter ended March 31, 2021. The Company’s net revenues had purportedly increased in tandem from RMB 549.2 million for the quarter ended March 31, 2019 to RMB 867.2 million (approximately US$132.9 million) for the quarter ended March 31, 2021.

Full Truck Alliance’s ability to continue to grow its user platform was of paramount importance to investors in the IPO. In addition, because of the Company’s reliance on the Internet and mobile platforms and the acquisition of vast amounts of user data for its business, it was critical to investors that Full Truck Alliance comply with all rules and regulations applicable to its operations for the gathering and use of customer data and that its platform maintain appropriate cybersecurity safeguards.

On July 5, 2021, Full Truck Alliance issued a press release confirming that it was subject to a review of its data collection and maintenance practices by the Cyberspace Administration of China and that it had been ordered to suspend all new user registrations during the review period to “prevent the expansion of potential risks.” In addition, the Company stated that it was “conducting a comprehensive self-examination of any potential cybersecurity risks and will continue to improve its cybersecurity systems and technology capabilities,” which confirmed that the Company’s existing practices were materially deficient and in need of improvement.

On July 6, 2021, Full Truck Alliance’s ADSs fell to a low of only $14.89 per ADS, before closing at $17.75 per ADS and continuing to fall the next trading day. This intraday low represented a nearly 22% decline from the price at which Full Truck Alliance’s ADSs had been sold to the investing public in the IPO less than two weeks previously.

If you purchased Full Truck Alliance securities pursuant or traceable to the IPO, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit Attorney advertising. Prior results do not guarantee similar outcomes.


Bragar Eagel & Squire, P.C.

Melissa Fortunato, Esq.

Marion Passmore, Esq.

(212) 355-4648