Business Wire 6-Dec-2018 5:41 PM
Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Cheetah Mobile Inc. (NYSE: CMCM) filed a class action complaint arising from violations of the Securities Exchange Act of 1934 by Cheetah Mobile's officers and directors between April 26, 2017, and November 27, 2018. Cheetah Mobile is a mobile Internet company with global market coverage.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/cheetah-mobile-inc/
Cheetah Mobile Accused of Basing Revenue on Fraudulent Activity
According to the complaint, Cheetah Mobile made materially false and misleading statements regarding its business, operation, and compliance policies. On November 26, 2018, BuzzFeed News reported that certain Cheetah apps then available in the Google Play store were exploiting user permissions as part of an ad fraud scheme. Cheetah's apps "tracked when users downloaded new apps and used this data to inappropriately claim credit for having caused the download." BuzzFeed News reported that two of Cheetah's apps were removed from the Google Play store after publication of the article. On this news, Cheetah's American depositary receipt ("ADR") price fell $3.32, or nearly 37%, over the next two trading sessions, closing at $5.48 on November 27, 2018.
Cheetah Mobile Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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