The Klein Law Firm announces that a class action complaint has been filed on behalf of persons and entities that: a) purchased or otherwise acquired Qutoutiao American Depositary Shares pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s September 2018 initial public offering and or b) purchased or otherwise acquired Qutoutiao securities between September 14, 2018 and July 15, 2020. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the Qutoutiao Inc. lawsuit alleges that (1) Qutoutiao replaced its advertising agent with a related party, thereby bypassing third-party oversight of the content and quality of the advertisements; (2) the Company placed advertisements on its mobile app for products whose claims could not be substantiated and thus were considered false advertisements under applicable regulations; (3) as a result, the Company would face increasing regulatory scrutiny and reputational harm; (4) as a result, the Company’s advertising revenue was reasonably likely to decline; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Shareholders have until October 19, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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