PDD(US:PDD) GlobeNewswire News Roomยท2024-10-10 10:05Core Viewpoint - PDD Holdings Inc., formerly known as Pinduoduo Inc., is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934 due to misleading statements and failure to disclose critical information regarding security and labor practices [1][2]. Group 1: Allegations Against PDD - The lawsuit claims that PDD's applications contained malware designed to obtain user data without consent, including access to private text messages [2]. - It is alleged that PDD lacks a meaningful system to prevent the sale of goods made by forced labor and has sold banned products on its Temu platform [2]. - The lawsuit indicates that these issues have subjected PDD to increased legal and political scrutiny [2]. - Following negative media coverage regarding security concerns, PDD's American Depositary Shares (ADSs) experienced a price drop of over 4% on March 21, 2023 [2]. - Subsequent articles published by Bloomberg and CNN further detailed malware issues and user privacy concerns, leading to additional declines in PDD's ADS prices [3]. Group 2: Legal Process and Representation - Investors who purchased PDD securities during the specified class period can seek appointment as lead plaintiff in the class action lawsuit [4]. - The lead plaintiff is typically the investor with the greatest financial interest and acts on behalf of all class members [4]. - The lead plaintiff has the authority to select a law firm for litigation, but participation as lead plaintiff does not affect the ability to share in any potential recovery [4]. Group 3: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud cases, having secured over $6.6 billion for investors in class action cases [5][6]. - The firm has been recognized for its significant recoveries, including the largest securities class action recovery in history at $7.2 billion from the Enron case [6].