Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against PDD Holdings Inc. f/k/a Pinduoduo Inc. (“PDD” or the “Company”) (NASDAQ: PDD) and reminds investors of the October 15, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) PDD Holdings’ applications contained malware, which was designed to obtain user data without the user’s consent, including reading private text messages; (2) PDD Holdings 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 PDD Holdings to a heightened risk of legal and political scrutiny; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On June 25, 2024, Arkansas Attorney General Tim Griffin announced a lawsuit against the Temu online marketplace, owned and operated by PDD, alleging violations of the Arkansas Personal Information Protection Act. Attorney General Griffin described Temu as "functionally malware and spyware . . . purposefully designed to gain unrestricted access to a user's phone operating system" in order to "monetize the unauthorized collection of data."
On this news, PDD's American depositary receipt ("ADR") price fell $8.06 per ADR, or 5.77%, over the following two trading sessions, to close at $131.94 per ADR on June 27, 2024.
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 PDD’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the PDD class action, go to www.faruqilaw.com/PDD or callFaruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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