NEW YORK, Aug. 4, 2020 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Cheetah Mobile, Inc. ("Cheetah Mobile" or the "Company") (NASDAQ: CMCM) and certain of its officers. The class action, filed in United States District Court for the Central District of California, and indexed under 20-cv-06896, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Cheetah Mobile securities between March 25, 2019, and February 20, 2020, inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (the "Exchange Act").
Cheetah Mobile is a mobile Internet company that offers mobile utility products (such as Clean Master and Cheetah Keyboard), casual games (such as Piano Tiles 2, Bricks n Balls), and live streaming product Live.me. The Company provides its advertising customers, which include direct advertisers and mobile advertising networks through which advertisers place their advertisements, with direct access to highly targeted mobile users and global promotional channels.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational, and compliance policies. Specifically, Defendants failed to disclose to investors that: (i) certain of Cheetah Mobile's apps were not compliant with the terms of its agreements with Google; (ii) as a result, there was a reasonable likelihood that Google would terminate its advertising contracts with the Company; (iii) as a result of the foregoing, the Company's ability to attract new users would be adversely impacted; (iv) as a result, the Company's revenue was reasonably likely to decline; and (v) 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.
On February 21, 2020, before the market opened, the Company disclosed that its Google Play Store, Google AdMob, and Google AdManager accounts were disabled on February 20, 2020 "because some of the Company's apps had not been compliant with Google policies, resulting in certain invalid traffic."
On this news, the Company's share price fell $0.61 per share, or nearly 17%, to close at $2.99 per share on February 21, 2020, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com