Shareholder rights law firm Robbins LLP announces that a purchaser of Cheetah Mobile Inc. (NYSE: CMCM) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between March 25, 2019 to February 20, 2020. Cheetah Mobile is a mobile Internet company that offers mobile utility, casual games, and live streaming products.
If you suffered a loss as a result of Cheetah Mobile's misconduct, click here.
Cheetah Mobile Inc. (CMCM) Accused of Misleading Shareholders
According to the complaint filed in June 2020, Cheetah Mobile announced positive financial results for its fourth quarter and 2018 annual report. In the following months, Cheetah Mobile continued to issue optimistic financial outlooks. However, the Company failed to disclose that certain Cheetah Mobile apps were in violation of Google's terms of agreement and could lead to the termination the Company's Google advertising contract. On February 21, 2020, Cheetah Mobile revealed 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 approximately 17% to close at $2.99 per share on February 21, 2020. On June 10, 2020, Cheetah Mobile announced in its first quarter 2020 financial results that revenues for its mobile utility product business "decreased by 62.6% year over year to RMB54.3 million in first quarter of 2020 . . . mainly due to the suspension of the Company's advertising collaborations with Google." On this news, the Company's share price fell $0.25, or more than 7%, over two consecutive trading sessions to close at $3.10 per share on June 11, 2020, and continues to decline.
If you purchased Cheetah Mobile Inc. (CMCM) securities between March 25, 2019 and February 20, 2020, you have until August 24, 2020, to ask the court to be appointed lead plaintiff for the class.
Want to be notified if a class action against CMCM settles? Want to receive free alerts about companies engaged in wrongdoing? Sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.