NEW YORK–(BUSINESS WIRE)–Faruqi & Faruqi, LLP, a leading national securities law firm, reminds
investors in Momo, Inc. (“Momo” or the “Company”)(NASDAQ:MOMO) of the
July 15, 2019 deadline to seek the role of lead plaintiff in a federal
securities class action that has been filed against the Company.
If you invested in Momo stock or options between April 21, 2015 and
April 29, 2019 and would like to discuss your legal rights, click
here: www.faruqilaw.com/MOMO.
There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292
or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the Southern
District of New York on behalf of all those who purchased Momo
securities between April 21, 2015 and April 29, 2019 (the “Class
Period”). The case, Marchand v. Momo Inc. et al, No.
19-cv-04433 was filed on May 15, 2019 and has been assigned to Judge
George B. Daniels.
The lawsuit focuses on whether the Company and its executives violated
federal securities laws by failing to maintain adequate controls and
compliance procedures to prevent inappropriate financial reporting
activity. The Company’s Tantan dating app was not compliant with Chinese
laws. This put the app at risk of being removed from Chinese app stores
at the direction of government officials. Based on these facts, the
Company’s public statements were false and materially misleading. When
the market learned the truth about Momo, investors suffered damages.
On June 27, 2018, Spruce Point Capital Management LLC (“Spruce Point”)
issued a short seller report on Momo, recommending a “strong sell”
opinion on the Company’s shares. The Spruce Point Report cited, inter
alia, possible compliance issues with the content of Momo’s services
under relevant PRC regulation, Momo’s failure to disclose corrective
taken by Chinese authorities against one of its variable interest
entities,1 and that the Company was engaged in related party
transactions and illicit business dealings (the “Spruce Point Report”).
On this news, Momo’s share price fell from $45.34 per share on June 26,
2018 to a closing price of $42.86 on June 27, 2018: a $2.48 or a 5.47%
drop.
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
Momo’s conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with respect
to any future matter. We welcome the opportunity to discuss your
particular case. All communications will be treated in a confidential
manner.
Contacts
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New
York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Telephone:
(877) 247-4292 or (212) 983-9330
