Faruqi & Faruqi Investigates Potential Claims Against PDD Holdings Inc.
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against PDD Holdings Inc. (formerly known as Pinduoduo Inc.), a company that operates popular online marketplaces like Temu. The firm is seeking investors who suffered losses exceeding $100,000 in PDD stock between April 30, 2021, and June 25, 2024.
The investigation centers around allegations that PDD Holdings and its executives misled investors about their business practices. The lawsuit claims that PDD engaged in the following activities, which were not disclosed to investors:
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Malware in Apps:
The company’s applications were allegedly found to contain malware designed to collect user data without consent, including private text messages.*
Forced Labor Products:
PDD allegedly had no effective system to prevent products made by forced labor from being sold on its platforms. The lawsuit points to the sale of banned products on its Temu marketplace.*
Legal and Political Risks:
These alleged activities exposed PDD Holdings to a heightened risk of legal and political scrutiny, which the company allegedly failed to disclose to investors.The lawsuit alleges that PDD’s statements about its business, operations, and prospects were misleading and lacked a reasonable basis. When these truths became known, the stock price dropped, causing significant losses for investors.
Deadline to Seek Lead Plaintiff Role
Investors who suffered losses in PDD have until October 15, 2024, to seek the role of lead plaintiff in the class action lawsuit. The lead plaintiff will represent the interests of all members of the class.
Contact Information
Investors who suffered losses exceeding $100,000 in PDD between April 30, 2021, and June 25, 2024, are encouraged to contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss their legal options. You can also visit www.faruqilaw.com for additional information.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP 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.
