New York, New York--(Newsfile Corp. - July 13, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cheetah Mobile, Inc. ("Cheetah Mobile" or the "Company") (NYSE: CMCM) of the August 24, 2020 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 Cheetah Mobile stock or options between March 25, 2019 and February 20, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/CMCM. 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 torgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Cheetah Mobile securities between March 25, 2019 and February 20, 2020 (the "Class Period"). The case, Azure Funds LLC v. Cheetah Mobile, Inc. et al., No. 20-cv-05696 was filed on June 25, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that certain of Cheetah Mobile's apps were not compliant with the terms of its agreements with Google; (2) that, as a result there was a reasonable likelihood that Google would terminate its advertising contracts with the Company; (3) that, as a result of the foregoing, the Company's ability to attract new users would be adversely impacted; (4) that, as a result, the Company's revenue was reasonably likely to decline; and (5) that as a result, Defendants' statements about the Company's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 21, 2020, before the market opened, Cheetah Mobile 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, Cheetah Mobile's share price fell from $3.60 per share on February 20, 2020 to a closing price of $2.99 on February 21, 2020: a $0.61 or a 16.94% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cheetah Mobile's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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