Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 Investing In Momo, Inc. To Contact The Firm
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.
If you invested in Momo stock or options between April 21, 2015 and April 29, 2019 and would like to discuss your legal rights, please fill out the form below. 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. 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, Marchand v. Momo Inc. et al, No. 19-cv-04433 was filed on May 15, 2019.
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,1 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.
Then on April 29, 2019 Momo issued a press release disclosing that the Tantan social and dating mobile app had been removed from certain mobile app stores at the direction of Chinese authorities.
On this news, Momo's share price fell from $36.87 per share on April 26, 2019 to a closing price of $34.36 on April 29, 2019: a $2.51 or a 6.81% drop.
Momo, Inc. (MOMO)
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Filed on 05/17/2019
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