Scott+Scott Attorneys at Law LLP Reminds Investors of Securities Class Action Against Sogou, Inc. (SOGO) and March 11 Lead Plaintiff Deadline
Business Wire 7-Mar-2019 10:51 AM
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 Company's 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 Sogou's 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) Sogou's cost of
revenues were skyrocketing primarily because of significant increases in
Traffic Acquisition Cost, which is a primary driver of Sogou's 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 Company's 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, Sogou's public statements were materially
false and misleading at all relevant times.
As the truth hit the market, Sogou's 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 rswartz@scott-scott.com.
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.
Attorney Advertising
View source version on businesswire.com: https://www.businesswire.com/news/home/20190307005486/en/
