Cloopen Enters into Binding Term Sheet to Settle U.S. Securities Class Actions

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.