Robbins Arroyo LLP: Pinduoduo Inc. (PDD) Misled Shareholders According to a Recently Filed Class Action

Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Pinduoduo Inc. (NasdaqGS: PDD) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 in connection with the company's July 2018 initial public offering ("IPO"). Pinduoduo operates an e-commerce platform in the People's Republic of China.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/pinduoduo-inc/

Pinduoduo Accused of Failing to Prevent Counterfeit Products on Its Platform

According to the complaint, on July 26, 2018, Pinduoduo completed its IPO, offering 85.6 million American Depositary Shares ("ADSs") priced at $19 per share and raising $1.63 billion. In the company's prospectus, Pinduoduo stated that its large buyer base attracted merchants to the company's platform, and the scale of the company's sales volume encouraged merchants to offer even more competitive pricing to buyers. However, Pinduoduo's controls could not prevent vendors from selling counterfeit products on the platform. On July 31, 2018, media outlets reported that Chinese regulators were investigating Pinduoduo after reports of third-party vendors selling counterfeit goods on its online marketplace. Pinduoduo's ADS price has since declined and currently trades below the IPO price.

Pinduoduo Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.

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