Scott+Scott Attorneys at Law LLP (Scott+Scott), a national securities and consumer rights litigation firm, is reminding investors that a federal class action lawsuit has been filed against Sogou Inc. (Sogou or the Company) (NYSE: SOGO) and related defendants (collectively, Defendants). If you purchased Sogou securities pursuant and/or traceable to the Companys November 2017 initial public offering (IPO), you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information. The lead plaintiff deadline is March 11, 2019.
Sogou is a Chinese Internet search company.
The complaint alleges that Defendants issued materially false and misleading statements to investors in connection with the IPO. Specifically, Defendants failed to disclose that: (i) Chinese regulators were analyzing Sogou for regulatory action because of an increase [in its] merchants sales of counterfeit goods and because Sogous existing software, advertising procedures, personnel, and audit procedures were insufficient to safeguard against compliance violations with governing Chinese regulators, and would need to be updated, enhanced and strengthened, [requiring] increased expenses; (ii) Sogous cost of revenues were skyrocketing primarily because of significant increases in Traffic Acquisition Cost, which is a primary driver of Sogous cost of revenues, as Sogou was dealing with significant price inflation from increased competition; (iii) Sogou planned to alter its strategy concerning smart hardware and push the Companys AI capabilities to increase product competitiveness; (iv) as a result of altering its smart hardware strategy, Sogou had already decided to phase out non-AI-enabled hardware products, such as legacy models of Teemo Smart Watch, and transition to use products integrating AI technologies, which Sogou hoped would reduce hardware revenues in the second half of 2018; and (v) as a result of the foregoing, Sogous public statements were materially false and misleading at all relevant times.
As the truth hit the market, Sogous share price fell to just $5.50 by October 30, 2018, a decrease of over 57% less than a year from the IPO.
What You Can Do
If you purchased Sogou securities, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.