A class action lawsuit has been filed on behalf of everyone who invested in Momo stock between 21st April, 2015 and 29th April, 2019, otherwise known as the Class Period.
New York City law firm Bragar, Eagel & Squire PC is claiming that the technology company continually made false and misleading statements regarding its business, operational and compliance policies.
This is specifically regarding the fact that Tantan was noncompliant with Chinese regulations, and was therefore constantly at risk of being removed from app stores at the government’s request.
Tantan disappeared from several major Android app stores at the end of April because of undisclosed policy violations.
The complaint is also claiming that Momo’s poor compliance procedures contributed to incorrect and illegitimate financial reports.
Anyone who bought shares in the Chinese company during the Class Period has until 15th July to become a participant in the lawsuit or apply to be the lead plaintiff.
Earlier this week, Momo and Tantan shutdown both of their respective social newsfeeds, preventing users from posting their own content on the platforms. This was following instruction from the government government asking the company to review its screening practices.
Momo’s stock price has dropped by almost 20% since the end of the Class Period and currently sits at $29.61 with a market cap of $6.1 billion.
Read more here.