NEW YORK, Dec. 03, 2018 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cheetah Mobile Inc. (“Cheetah” or the “Company”) (NYSE:CMCM) of the January 29, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Cheetah stock or options between April 26, 2017 and November 27, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/CMCM. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Cheetah securities between April 26, 2017 and November 27, 2018 (the “Class Period”). The case, Marcu v. Cheetah Mobile Inc. et al, No. 18-cv-11184 was filed on November 30, 2018, and has been assigned to Judge Jesse M. Furman.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Cheetah’s apps had undisclosed imbedded features which tracked when users downloaded new apps; (2) Cheetah used this data to inappropriately claim credit for having caused the downloads; (3) the foregoing features, when discovered, would foreseeably subject the Company’s apps to removal from the Google Play store; (4) accordingly, Cheetah’s Class Period revenues were in part the product of improper conduct and thus unsustainable; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Specifically, on November 26, 2018, BuzzFeed News published an article reporting that certain Cheetah apps then available in the Google Play store were found to be exploiting user permissions as part of an ad fraud scheme. The BuzzFeed News article stated that Cheetah’s apps “tracked when users downloaded new apps and used this data to inappropriately claim credit for having caused the download.” Upon the publication of the article, certain of Cheetah’s apps, including the Battery Doctor and CM Locker, were removed from the Google Play store.
On this news, the Company’s stock price fell from $8.16 per share on November 26, 2018 to $5.48 per share on November 27, 2018—a $2.68 or 32.84% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cheetah’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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