Cheetah Mobile Inc. (Nasdaq: CMCM)
A class action has been commenced on behalf of purchasers of Cheetah Mobile Inc. (Nasdaq: CMCM) common stock between April 26, 2017 and October 25, 2017 (the “Class Period”).
The complaint charges Cheetah Mobile and certain of its officers with violations of the Securities Exchange Act of 1934. Cheetah Mobile operates a platform that offers mobile and personal computer applications for its users and global content promotional channels. The Company’s 90% owned Cayman Islands subsidiary operates Live.me, a live video streaming application through which broadcasters can earn real money from users via the application’s gifting system.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Cheetah Mobile’s business and operations, including that the Company was using company-controlled accounts to inflate the gifting on Live.me and thereby was overstating its revenue. As a result of defendants’ false statements and/or omissions, Cheetah Mobile securities traded at artificially inflated prices during the Class Period, with its shares reaching a high of $13 per share.
On October 26, 2017, Prescience Point Research Group published a report asserting, among other things, that approximately 55% of Cheetah Mobile’s reported consolidated revenue did not exist and that Cheetah Mobile was using company-controlled or “fake” accounts on Live.me to gift other users using company money. On this news, shares of Cheetah Mobile fell $0.37 per share, or over 4%, to close at $8.05 per share on October 26, 2017.
If you are a current shareholder and purchased stock between April 26, 2017 and October 25, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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