Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Qutoutiao Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading minority and certified woman-owned national securities law firm, is investigating potential claims against Qutoutiao Inc. (“Qutoutiao” or the “Company”) (NASDAQ:QTT) and reminds investors of the October 19, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Qutoutiao stock or options pursuant to the Company’s September 2018 IPO and/or between September 14, 2018 and July 15, 2020 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 Faruqi & Faruqi partner James Wilson toll free at 877-247-4292 or 212-983-9330 (Ext. 1310) or by emailing him at firstname.lastname@example.org to discuss your rights and options.
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 Qutoutiao securities pursuant to the Company’s September 2018 IPO and/or between September 14, 2018 and July 15, 2020 (the “Class Period”). The case, Burnham v. Qutoutiao Inc. et al., No. 20-cv-06707 (S.D.N.Y. Aug 20, 2020) was filed on August 20, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that Qutoutiao replaced its advertising agent with a related party, thereby bypassing third-party oversight of the content and quality of the advertisements;
(2) that 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) that, as a result, the Company would face increasing regulatory scrutiny and reputational harm; (4) that, as a result, the Company’s advertising revenue was reasonably likely to decline; and (5) that, 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.
Specifically, on December 10, 2019, Wolfpack Research published a report, alleging among other things, that the Company had overstated its revenues by recording non-existent advances from advertising customers. Moreover, the report alleged that Qutoutiao replaced its third-party advertising agent with a related party, thereby bypassing the agent’s oversight and allowing the Company to “perpetrate the unmitigated ad fraud that [Wolfpack] observed in [its] sample.”
On this news, Qutoutiao stock fell from a closing price of $2.98 on December 10, 2019 to $2.86 on December 11, 2019—a $0.12 or 4.03% drop.
On July 15, 2020, hosts of a consumer rights gala stated that Qutoutiao had allowed ads on its platform promoting exaggerated or impossible claims from weight-loss products. For example, one such ad offered free weight-loss products valued at $14,300 that would help users lose more than 30 pounds a month.
On this news, Qutoutiao stock fell from a closing price of $3.69 on July 15, 2020 to $2.84 on July 16, 2020—a $0.85 or 23.04% drop.
Qutoutiao Inc. (QTT)
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Filed on 08/21/2020
Lead Plaintiff Deadline 10/19/2020
685 Third Avenue 26th Floor
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Phone (212) 983-9330
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Robert W. Killorin email@example.com Phone (404) 847-0617 Fax (404) 506-9534
James M. Wilson, Jr. firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331