Pinduoduo Inc. (NYSE: PDD)
A class action lawsuit has been filed in United States District Court, Southern District of New York on behalf of those who purchased shares of Pinduoduo Inc. (NYSE: PDD) pursuant and/or traceable to the Company’s July 26, 2018 initial public offering (the “IPO” or the “Offering”).
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: (i) Pinduoduo’s controls were ineffective to present third-party vendors from selling counterfeit goods on the Company’s online platform; (ii) consequently, Pinduoduo’s revenues and the number of active merchants using its platform were traceable in part to unlawful conduct and thus unsustainable; and (iii) 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, the price of Pinduoduo ADSs fell $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 ADS price had not recovered, and traded below its Offering price of $19.00 per share.
If you are a current shareholder and/or purchased stock pursuant and/or traceable to the Company’s July 26, 2018 initial public offering (the “IPO” or the “Offering”) 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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