08:56 AM EST, 03/06/2024 (MT Newswires) -- Dada Nexus ( DADA ) said in a regulatory filing late Tuesday with the US Securities and Exchange Commission an independent review of certain "suspicious practices" accounting for certain revenue from its online advertising and marketing services in 2023 "is now substantially complete."

The company said in the filing the review identified certain transactions done mainly to achieve revenue targets.

"These transactions involved payments from certain upstream customers and disbursements of cash funds to certain downstream vendors of virtually identical amounts that lacked any apparent business substance, were not supported by credible documents, business records or other evidence, and, in certain cases, involved customers and vendors with undisclosed connections," Dada said.

In response to the review, Dada said it will reverse "overstated" net revenue where necessary, terminate contracts related to the relevant transactions and enhance internal policies, among other things.The company also said the SEC and Nasdaq have sought information related to the 'suspicious practices,' which were identified during the company's routine internal audit.

In a separate SEC filing Tuesday, Dada said Jeff Huijian He, formerly its president and director, is stepping down following the independent review. The company said the current head of its Dada Now business, Bing Fu, was named interim president, effective immediately.

Dada shares jumped 20% in recent Wednesday premarket activity.

Price: 2.35, Change: +0.38, Percent Change: +19.29