Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Pinduoduo, Inc. (Pinduoduo or the Company) (NASDAQ:PDD) of the October 22, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Pinduoduo stock or options between July 23, 2018 and August 21, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/PDD. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Pinduoduo securities July 23, 2018 and August 21, 2018 (the Class Period). The case, Jiaxiang Wei v. Pinduoduo, Inc., No. 18-cv-07625 was filed on August 21, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (i) Pinduoduos controls were ineffective to present third-party vendors from selling counterfeit goods on the Companys online platform; (ii) consequently, Pinduoduos 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, Pinduoduos public statements were materially false and misleading at all relevant times.
Specifically, on July 31, 2018 and August 1, 2018, media outlets reported that Chinas State Administration for Market Regulation was investigating Pinduoduo after reports of third-party vendors selling counterfeit goods on the Companys group-discounting website.
After the announcement, Pinduoduos share price fell from $22.59 per share on July 31, 2018 to a closing price of $20.31 on August 1, 2018a $2.28 or a 10.09% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Pinduoduos conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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York, NY 10017
Attn: Richard Gonnello, Esq.
(877) 247-4292 or (212) 983-9330