A lawsuit was filed on behalf of investors in Sogou Inc. (NYSE: SOGO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/29/2019 -- An investor, who purchased shares of Sogou Inc. (NYSE: SOGO), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Sogou Inc. in connection with the Company's initial public offering on November 9, 2017 (the "IPO" or the "Offering")
Investors who purchased shares of Sogou Inc. (NYSE: SOGO) have certain options and for certain investors are short and strict deadlines running. Deadline: March 11, 2019. NYSE: SOGO investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
China based Sogou Inc. provides search and search-related services in the People's Republic of China. The company provides Sogou Search, a search engine; and Sogou Input Method, a Chinese language input software for mobile and PC MAUs. Sogou Inc. raised $585 million in its initial public offering in early November 2017 by selling 45 million American depositary shares at $13 per share. Sogou Inc. reported that its annual Total Revenue rose from $660.40 million in 2016 to $908.35 million in 2017 and that its Net Income increased from $56.11 million in 2016 to $82.20 million in 2017.
The plaintiff claims that defendants made false and/or misleading statements and/or failed to disclose that Chinese regulators were analyzing Sogou Inc for regulatory action because of an increase Sogou Inc merchants' sales of counterfeit goods, that Chinese regulators were analyzing Sogou Inc for regulatory action because Sogou's existing software, advertising procedures, personnel, and audit procedures were insufficient to safeguard against compliance violations with governing Chinese regulations, and would need to be updated, enhanced, and strengthened, thus resulting in increased expenses, that Sogou's cost of revenues were skyrocketing primarily because of significant increases in Traffic Acquisition Cost, which is a primary driver of Sogou's cost of revenues, as Sogou Inc was dealing with significant price inflation from increased competition, that Sogou was going to alter its strategy concerning smart hardware and push the Company's AI capabilities to increase product competitiveness, that as a result of altering its smart hardware strategy, Sogou Inc had already decided to phase out non-AI-enabled hardware products, such as legacy models of Teemo Smart Watch, and transition to use products integrating AI technologies, which Sogou Inc hoped would reduce its hardware revenues in the second half of 2018, and that as a result of the foregoing, Sogou's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Sogou Inc. (NYSE: SOGO) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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