NEW YORK, Feb. 13, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Sogou, Inc. ("Sogou" or the "Company")(NYSE: SOGO ) of the March 11, 2019 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 Sogou stock or options pursuant and/or traceable to the Company's November 9, 2017 initial public offering ("IPO") and would like to discuss your legal rights, click here: www.faruqilaw.com/SOGO. 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 to rgonnello@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 Southern District of New York on behalf of all those who purchased Sogou American Depository Shares ("ADSs") pursuant and/or traceable to the Company's November 9, 2017 IPO. The case, Luo v. Sogou, Inc. et al. , No. 19-cv-00230 was filed on January 9, 2019, and has been assigned to Judge J. Paul Oetken.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Chinese regulators were analyzing Sogou for regulatory action because of an increase Sogou merchants’ sales of counterfeit goods; (2) Chinese regulators were analyzing Sogou 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; (3) 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 was dealing with significant price inflation from increased competition; (4) Sogou was going to alter its strategy concerning smart hardware and push the Company’s AI capabilities to increase product competitiveness; and (5) as a result of altering its smart hardware strategy, Sogou 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 hoped would reduce its hardware revenues in the second half of 2018.
Since Sogou's IPO, the Company's share price has declined from its IPO price of $13 by approximately 53%.
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 Sogou's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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