MOMO, INC. INVESTOR ALERT: Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against Momo, Inc.
NEW YORK, May 22, 2019 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against Momo, Inc. (“Momo” or the “Company”) (NASDAQ: MOMO) in United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired the American Depositary Receipts (“ADR’s”) of Momo between April 21, 2015 and April 29, 2019, both dates inclusive (the “Class Period”).
Investors who purchased the ADR’s of Momo, Inc. are urged to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website www.whafh.com.
If you have incurred losses in the ADR’s of Momo, Inc., you may, no later than July 15, 2019, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Momo, Inc.
The filed complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
-- Momo’s compliance procedures and controls were inadequate to prevent, inter alia, illicit financial reporting activity; -- Momo’s social and dating app, Tantan, was materially noncompliant with Chinese law and/or regulations; -- Tantan was consequently at an increased risk of being removed from Chinese app stores at the direction of Chinese governmental authorities; and -- as a result, Momo’s public statements were materially false and misleading at all relevant times.
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 citing, inter alia, possible compliance issues under PRC regulation (the “Spruce Point Report”). According to several agencies cited throughout the Spruce Point Report, Momo had a reputation for being a “sex cam” service—i.e., Momo users were using Momo’s services for illicit sexual content. The Spruce Point report also alleged various illicit financial reporting activity by Momo. Following the publication of the Spruce Point Report, Momo’s ADAR price fell $2.48 per share, or 5.5%, to close at $42.86 per share on June 27, 2018. On June 28, 2018, Momo issued a press release, appended as an exhibit to Momo’s report on Form 6-K with the SEC, denying the allegations in the Spruce Point Report. Despite its public denial, the Company’s inadequate compliance procedures and controls came to a head on April 29, 2019, when Momo issued a press release disclosing that the Tantan social and dating mobile app had been removed from certain mobile app stores at the direction of Chinese authorities (the “April 2019 Press Release”). On this news, Momo’s ADR price fell $2.51 per share, or 6.81%, to close at $34.36 per share on April 29, 2019. Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP Kevin Cooper, Esq.Gregory Stone, Director of Case and Financial AnalysisEmail: email@example.com, firstname.lastname@example.org or email@example.com Tel: (800) 575-0735 or (212) 545-4774
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