NEW YORK, Aug. 22, 2018 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Pinduoduo Inc. (NASDAQ: PDD) securities pursuant and/or traceable to the Company’s July 26, 2018 initial public offering (the “IPO” or the “Offering”). Investors have until October 22, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. In the Registration Statement and Prospectus issued in connection with Pinduoduo’s IPO, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Pinduoduo’s controls were ineffective to prevent third-party vendors from selling counterfeit goods on the Company’s online platform; (2) consequently, Pinduoduo’s revenues and the number of active merchants using its platform were traceable in part to unlawful conduct and thus unsustainable; and (3) as a result, Pinduoduo’s public statements were materially false and misleading at all relevant times.
On July 31, 2018, and August 1, 2018, media outlets reported that China’s State Administration for Market Regulation was investigating Pinduoduo after reports of third-party vendors selling counterfeit goods on the Company’s group-discounting website. On this news, Pinduoduo stock declined $2.28, or 10.09%, to close at $20.31 on August 1, 2018. At the time of the filing of the complaint, Pinduoduo’s stock had not recovered, and traded below its Offering price of $19.00 per share.
If you purchased Pinduoduo securities shares traceable to the IPO and suffered a loss, 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 Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Pinduoduo Inc. lawsuit, please go to https://bespc.com/pdd/. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com