NEWTOWN, Pa., Aug. 29, 2024 (GLOBE NEWSWIRE) — Edelson Lechtzin LLP, a leading class action law firm, announces that investors of PDD Holdings Inc. f/k/a Pinduoduo (NASDAQ: PDD) between April 30, 2021, and June 25, 2023, inclusive (the “Class Period”) may seek appointment as lead plaintiff in the pending securities fraud class action lawsuit. A copy of the Complaint can be found HERE.
Investors who purchased PDD Holdings stock may move the U.S. District Court for the Eastern District of New York to appoint them as lead plaintiff, no later than October 15, 2024.
You may contact Edelson Lechtzin LLP to discuss your investment losses at 844-696-7492, or by e-mail at elechtzin@edelson-law.com. You can also submit your trading information online HERE.
Background on PDD Holdings Inc. f/k/a Pinduoduo Inc.
PDD Holdings, headquartered in Dublin, Ireland, is a global conglomerate that owns and manages a collection of companies, including Pinduoduo, an e-commerce platform, and Temu, another online retailer.
The Securities Fraud Claims
Throughout the Class Period, the complaint alleges that Defendants made materially false and/or misleading statements and/or failed to disclose that: (i) PDD Holdings applications contained malware, which was designed to obtain user data without the user’s consent, including reading private text messages; (ii) 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; and (iii) the foregoing subjected the company to a heightened risk of legal and political scrutiny.
On March 21, 2023, Reuters released an article titled, “Google Suspends China’s Pinduoduo App Due to Security Concerns.” The article highlighted the identification of malware issues in certain versions of the app. On this news, the price of PDD Holdings ADS fell $3.35 per share, or 4.24%, to close at $75.58 on March 22, 2023.
Then on March 27, 2023, Bloomberg published an article alleging that some versions of the Pinduoduo app contained malicious code that exploited users’ information. On this news, the price of PDD Holdings ADS fell $2.28 per share, or 3.08%, to close at $71.68 on March 27, 2023.
On April 2, 2023, CNN published an article titled “I’ve never seen anything like this: One of China’s most popular apps has the ability to spy on its users, say experts.” On this news the price of PDD Holdings ADS fell $1.06 per share, or 1.4%, to close at $74.84 on April 3, 2023.
Finally, on June 25, 2024, Tim Griffin, the Attorney General of Arkansas, issued a press release announcing that he was suing Temu for violations of the Arkansas Deceptive Trade Practices Act and the Arkansas Personal Information Protection Act. On this news, PDD Holdings ADS fell by 1.26% on June 26,2024 and 4.55% on June 27, 2024.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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