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PDD FRAUD ALERT: PDD Holdings Inc. was Sued for Securities Fraud Contact BFA Law if You Suffered Losses on Your Investment (Nasdaq:PDD)
Globe Newswire 14-Aug-2024 12:46 PM
NEW YORK, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against PDD Holdings Inc. (NASDAQ:PDD) and certain of the Company's senior executives.
Investors have until October 15, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in PDD securities between April 30, 2021 and June 25, 2024, inclusive. The case is pending in the U.S. District Court for the Eastern District of New York and is captioned Baxter v. PDD Holdings, et al., No. 24-cv-5653.
What is the Lawsuit About?
PDD is a multinational commerce group that owns and operates a portfolio of businesses. Two of the Company's largest businesses are Pinduoduo and Temu. The complaint alleges that during the relevant period, the company misrepresented that it complied with all applicable laws relating to privacy and cybersecurity, maintained complete security over confidential or private information of its customers, and did not use "forced, penal, or child labor." In truth, PDD's android application contained malware designed to obtain user data and read private messages without user consent. What's more, PDD had no system to prevent goods being made through forced labor from being placed on its platform and had openly sold such banned products on Temu.
On March 21, 2023, Reuters published an article revealing that Google had suspended the Pinduoduo app after malware issues were found on versions of the Chinese e-commerce app. This news caused the price of PDD ADS to decline by $3.35 per share, or over 4%, to close at $75.58 per share on March 22, 2023.
Then, on March 27, 2023, Bloomberg published an article stating that "[s]ecurity researchers at Moscow-based Kaspersky Lab have identified and outlined potential malware in versions of [PDD's] Chinese shopping app Pinduoduo, days after Google suspended it from its Android app store." It revealed that earlier versions of Pinduoduo "exploited system software vulnerabilities to install backdoors and gain unauthorized access to user data and notifications." On this news, the price of PDD ADS declined by $2.28 per share, or over 3%, to close at $71.68 per share on March 27, 2023.
On Sunday April 2, 2023, CNN published an article indicating that the Pinduoduo app "can also bypass users' cell phone security to monitor activities on other apps, check notifications, read private messages and change settings." According to CNN, Pinduoduo's conduct "is highly unusual, and it is pretty damning for Pinduoduo." On this news, the price of PDD ADS declined $1.06 per share, or 1.4%, to close at $74.84 per share on April 3, 2023.
Additionally, on June 22, 2023, The New York Times published an article titled "Congress Spotlights ‘Serious' Forced Labor Concerns With Chinese Shopping Sites." The article stated that "[l]awmakers are flagging what they say are likely significant violations of U.S. Law by Temu, a popular Chinese shopping platform, accusing it of providing an unchecked channel that allows goods made with forced labor to flow into the United States." The following day, on June 23, 2023, Business Insider published an article based on Congress's investigation titled "Temu reportedly relies on customers and suppliers to report if goods from the site were produced by forced labor." On this news, PDD's ADS fell by $3.09 per share, or over 4%, to close at $69.80 per share on June 23, 2023.
Finally, on June 25, 2024, the Attorney General of Arkansas announced that he sued Temu for violations of the Arkansas Deceptive Trade Practices Act and the Arkansas Personal Information Protection Act. The announcement stated that "[t]hough it is known as an e-commerce platform, Temu is functionally malware and spyware. It is purposefully designed to gain unrestricted access to a user's phone operating system." On this news, PDD's ADS fell over 1% on June 26, 2024, and then an additional nearly 5% to close at 131.94 per share on June 27, 2024.
If you invested in PDD, you have rights and are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses. Submit your information by visiting:
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
