A securities class action has been filed in the USDC — E.D.N.Y. against PDD Holdings Inc. (f/k/a Pinduoduo Inc.) (PDD) (“PDD” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Lululemon securities between December 7, 2023 and July 24, 2024, both dates inclusive (the “Class Period”).
PDD purports to be “a multinational commerce group that owns and operates a portfolio of businesses.” The Company changed its name to PDD Holdings Inc. in February 2023.
The Company describes its Pinduoduo platform as follows: Our Pinduoduo platform provides buyers with a comprehensive selection of value-for money merchandise and fun and interactive shopping experiences. The platform pioneered an innovative “team purchase” model. Buyers are encouraged to share product information on social networks, and invite their friends, family and social contacts to form shopping teams to enjoy the more attractive prices available under the “team purchase” option. Pinduoduo’s buyer base helps attract merchants to the platform, while the scale of the platform’s sales volume encourages merchants to offer more competitive prices and customized products and services to buyers, thus forming a virtuous cycle.
The Company describes its Temu platform as follows: Temu was founded in September 2022 in Boston, Massachusetts, the United States. As a new initiative at an early stage of development, Temu aspires to become a global online platform dedicated to providing quality products to consumers at attractive prices. In partnership with a global network of logistics vendors and fulfillment partners, Temu empowers merchants with value-added services that enables a broader market reach.
The complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that:
(1) PDD’s applications contained malware, which was designed to obtain user data without the user’s consent, including reading private text messages;
(2) PDD has no meaningful system to prevent goods made by forced labor from being sold on its platform, and has openly sold banned products on its Temu platform;
(3) the foregoing subjected the Company to a heightened risk of legal and political scrutiny; and
(4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times, thereby harming investors.
If you purchased PDD securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.