PDD Holdings, Inc. (NASDAQ: PDD)

This lawsuit is for anyone who acquired securities in PDD Holdings, Inc. (NASDAQ: PDD) securities from April 30, 2021 through August 23, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to inform investors that the Company’s applications contain malware designed to obtain customer information without their consent, and that by knowingly producing applications containing malware the Company subjected itself to regulatory scrutiny and loss of business prospects.

On March 21, 2023, Reuters reported that PDD’s Pinduoduo app had been suspended by Google for “security concerns, after malware issues were found on versions of the Chinese e-commerce app outside Google’s app store.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on March 27, 2023, Bloomberg reported that “[s]ecurity researchers . . . have identified and outlined potential malware in versions of [PDD’s] Chinese shopping app Pinduoduo, days after Google suspended it from its Android app store.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on June 25, 2024, the Attorney General of Arkansas announced that he was suing PDD’s shopping app, Temu, for violations of the Arkansas Deceptive Trade Practices Act and the Arkansas Personal Information Protection Act, stating that Temu “is a data-theft business that sells goods online as a means to an end,” and that “[t]hough it is known as an e-commerce platform, Temu is functionally malware and spyware. It is purposefully designed to gain unrestricted access to a user’s phone operating system. It can override data privacy settings on users’ devices, and it monetizes this unauthorized collection of data.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on August 26, 2024, when PDD disclosed its quarterly results for the second quarter of 2024 and announced that it had decided not to issue dividends or repurchase shares for the foreseeable years ahead, and stated that it expects that future profitability will be weighed down by a reduction in transaction fees for high quality merchants to drive the high-quality development of its merchant ecosystem. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in PDD Holdings, Inc. (NASDAQ: PDD) securities from April 30, 2021 through August 23, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.