Momo, Inc. (MOMO) Subject Of A Class Action Lawsuit

Momo, Inc. (MOMO), a publicly-traded mobile application company that operates in China, is the subject of a class action lawsuit filed on behalf of shareholders who lost money investing in the company.

Momo, Inc. Class Period And Lead Plaintiff Deadline

Investors who purchased shares of Momo between April 21, 2015 and April 29, 2019 (the class period) may be eligible to participate in the lawsuit, which concerns violations of federal securities laws.

The deadline to apply to the court to be appointed as lead plaintiff, also called class representative, is July 15, 2019.

The lawsuit alleges that, during the class period, Momo failed to disclose that their compliance procedures and controls weren’t adequate to prevent illicit financial reporting activity, and that their dating app, Tantan, wasn’t compliant with Chinese laws.

On June 27, 2018, investment manager Spruce Point Capital Management issued a report that recommended a “strong sell” opinion on Momo’s shares because of potential compliance issues. Spruce Point’s report stated that users were using Momo’s services for illicit sexual content, which put them at risk of violating Chinese regulations.

Momo’s shares closed down 5.47% on June 27, 2018, causing significant damage to shareholders. The next day Momo denied the allegations in the Spruce Point memo.

On April 29, 2019, Momo disclosed that its Tantan app was removed from certain app stores at the direction of Chinese authorities. That day the stock closed down 6.81%.

Recovering Money Lost With Momo, Inc. (MOMO) Stock

If you suffered losses with Momo, Inc., you may be able to recover some of your losses by participating in the lawsuit.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.