World News: 19:03 GMT Tuesday 28th May 2019. [Faruqi & Faruqi LLP via Globe Newswire via SPi World News]
NEW YORK, May 28, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Momo, Inc. ("Momo" or the "Company")(NASDAQ: MOMO) of the July 15, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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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 Momo securities between April 21, 2015 and April 29, 2019 (the "Class Period"). The case, , No. 19-cv-04433 was filed on May 15, 2019 and has been assigned to Judge George B. Daniels.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to maintain adequate controls and compliance procedures to prevent inappropriate financial reporting activity. The Company’s Tantan dating app was not compliant with Chinese laws. This put the app at risk of being removed from Chinese app stores at the direction of government officials. Based on these facts, the Company’s public statements were false and materially misleading. When the market learned the truth about Momo, investors suffered damages.
On June 27, 2018, Spruce Point Capital Management LLC ("Spruce Point") issued a short seller report on Momo, recommending a "strong sell" opinion on the Company’s shares. The Spruce Point Report cited, inter alia, possible compliance issues with the content of Momo’s services under relevant PRC regulation, Momo’s failure to disclose corrective taken by Chinese authorities against one of its variable interest entities, and that the Company was engaged in related party transactions and illicit business dealings (the "Spruce Point Report").
On this news, Momo's share price fell from $45.34 per share on June 26, 2018 to a closing price of $42.86 on June 27, 2018: a $2.48 or a 5.47% 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 Momo's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Globe Newswire: 19:03 GMT Tuesday 28th May 2019
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