Securities Fraud Class Action Against Qutoutiao, Inc.
To help shareholders recover losses due to violations of the federal securities laws, Freedman Normand Friedland LLP is actively litigating In re Qutoutiao, Inc. Securities Litigation, No. 1:20-cv-06707, against Defendants Qutoutiao, Inc. ("QTT"), certain executives and directors of QTT, and companies who served as underwriters for QTT's public offerings.
QTT offers a mobile application called Qutoutiao, meaning "fun headlines" in chinese, that provides a customised feed to its users of aggregated articles and short videos from professional media and freelancers. The current complaint alleges that Defendants violated federal securities laws by issuing materially false and/or misleading information in QTT's offering documents and public statements made between September 14, 2018 and December 16, 2020, inclusive, that artificially inflated its stock price. Specifically, Defendants made statement that: (i) mischaracterized QTT's targeting of users in Tier-3 and Tier-4 cities in China; (ii) inaccurately described the benefits of, and reasons for, replacing QTT's third-party advertising agency; (iii) misleading touted QTT's unsustainable advertising revenue based on illegal content; (iv) misleading touted QTT's 2017 and 2018 revenue; (v) negligently promoted QTT's ability to monetize user traffic; and (vi) failed to adequately warn investors that certain risks that had already materialized at the time of the Company's offerings. When the truth was revealed, QTT's stock suffered a precipitous decline in market value, thereby causing significant losses and damages to shareholders.
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If you purchased American Depository Shares ("ADSs") of QTT pursuant or traceable to the Company's September 2018 initial public offering and/or April 2019 secondary public offering; and/or purchased or otherwise acquired QTT securities between September 14, 2018 and December 16, 2020, and would like us to evaluate your claim and/or for more information about the lawsuit, please submit your information.