Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Sept. 30, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises PDD Holdings Inc. f/k/a Pinduoduo Inc. ("PDD" or the "Company") (NASDAQ: PDD) investors of a class action representing investors that bought securities between April 30, 2021 and August 23, 2024, inclusive (the "Class Period"). PDD investors have until October 15, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
PDD runs the online marketplaces Pinduoduo and Temu, allowing Chinese merchants to sell products to consumers worldwide. The new complaint builds on earlier fraud allegations. It claims that during the Class Period, PDD misled investors by highlighting its growth while hiding several key issues that made this growth unsustainable and risky. These issues include: (a) policies that made it unprofitable for vendors to sell on PDD platforms while allowing the company to increase revenue and cut costs; (b) malware problems on PDD apps that exploited customers and collected their data without consent; (c) a lack of effective compliance systems, including those to prevent the sale of goods made with forced labor; and (d) as a result of these issues, PDD faced hidden risks related to poor relationships with merchants and customers, leading to significant fee refunds, merchants leaving for competitors, and slower customer growth.
The fraud allegations began to surface through a series of disclosures in 2023 and 2024, culminating on August 26, 2024. On this date, PDD announced its second-quarter results for 2024 and revealed that it would not issue dividends or buy back shares for the foreseeable future. The company also indicated that future profitability would be impacted by reduced transaction fees for high-quality merchants to promote better merchant practices. Following this news, the price of PDD ADSs dropped $39.87, or 29%, closing at $100.00 on August 26, 2024.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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