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Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against PDD Holdings Inc. (PDD)
Globe Newswire 29-Aug-2024 12:00 PM
LOS ANGELES, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming October 15, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired PDD Holdings Inc. ("PDD" or the "Company") (NASDAQ:PDD) securities between April 30, 2021 and June 25, 2024, inclusive (the "Class Period").
If you suffered a loss on your PDD investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/PDD-Holdings-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On March 21, 2023, Reuters reported that PDD's Pinduoduo app had been suspended by Google for "security concerns, after malware issues were found on versions of the Chinese e-commerce app outside Google's app store." On this news, PDD's stock price fell $3.35, or 4.2%, to close at $75.58 per share on March 22, 2023, thereby injuring investors.
Then, on March 27, 2023, Bloomberg reported that "[s]ecurity researchers . . . 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." On this news, PDD's stock price fell $2.28, or 3.1%, to close at $72.68 per share on March 27, 2023.
Then, on June 25, 2024, the Attorney General of Arkansas announced that he was suing PDD's shopping app, Temu, for violations of the Arkansas Deceptive Trade Practices Act and the Arkansas Personal Information Protection Act, stating that Temu "is a data-theft business that sells goods online as a means to an end," and 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. It can override data privacy settings on users' devices, and it monetizes this unauthorized collection of data." On this news, PDD's stock price fell $8.06, or 5.8%, over two consecutive trading days to close at $131.94 per share on June 27, 2024, thereby injuring investors further.
The complaint filed in this class action 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. Specifically, Defendants failed to disclose to investors that: (1) PDD's applications contained malware, which was designed to obtain user data without the user's consent, including reading private text messages; (2) PDD has no meaningful system to prevent goods made by forced labor from being sold on its platform, and has openly sold banned products on its Temu platform; (3) the foregoing subjected the Company to a heightened risk of legal and political scrutiny; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired PDD securities during the Class Period, you may move the Court no later than October 15, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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