Scott+Scott Attorneys at Law LLP Alerts Investors to Securities Class Action Against Sogou, Inc. (SOGO)
NEW YORK--(BUSINESS WIRE)--Jan 15, 2019--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a federal class action lawsuit has been filed against Sogou Inc. (“Sogou” or the “Company”) (NYSE: SOGO) and related defendants (collectively, “Defendants”). If you purchased Sogousecurities pursuant and/or traceable to the Company’s November 2017 initial public offering (“IPO”), you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.
Sogou is a Chinese Internet search company.
The complaint alleges that Defendants issued materially false and misleading statements to investors in connection with the IPO. Specifically, Defendants failed to disclose that: (i) Chinese regulators were analyzing Sogou for regulatory action because of an increase [in its] merchants’ sales of counterfeit goods and because Sogou’s existing software, advertising procedures, personnel, and audit procedures were insufficient to safeguard against compliance violations with governing Chinese regulators, and would need to be updated, enhanced and strengthened, [requiring] increased expenses; (ii) Sogou’s cost of revenues were skyrocketing primarily because of significant increases in Traffic Acquisition Cost, which is a primary driver of Sogou’s cost of revenues, as Sogou was dealing with significant price inflation from increased competition; (iii) Sogou planned to alter its strategy concerning smart hardware and push the Company’s AI capabilities to increase product competitiveness; (iv) as a result of altering its smart hardware strategy, Sogou had already decided to phase out non-AI-enabled hardware products, such as legacy models of Teemo Smart Watch, and transition to use products integrating AI technologies, which Sogou hoped would reduce hardware revenues in the second half of 2018; and (v) as a result of the foregoing, Sogou’s public statements were materially false and misleading at all relevant times.
As the truth hit the market, Sogou’s share price fell to just $5.50 by October 30, 2018, a decrease of over 57% less than a year from the IPO.
What You Can Do
If you purchased Sogou securities, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at email@example.com. The lead plaintiff deadline is March 11, 2019.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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CONTACT: Rhiana Swartz
Scott+Scott Attorneys at Law LLP
230 Park Ave, 17th Floor, NY, NY 10169
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Scott+Scott Attorneys at Law LLP
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PUB: 01/15/2019 10:58 AM/DISC: 01/15/2019 10:58 AM