Sogou Inc. (NYSE: SOGO) Investor Securities Class Action Lawsuit 01/09/2019

If you purchased shares of Sogou Inc. (NYSE: SOGO), you 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, Inc.

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Company Name(s): 
Case Name: 
Sogou Shareholder Class Action Lawsuit 01/09/2019
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 

An investor in shares of Sogou Inc. (NYSE: SOGO) filed a lawsuit in the U.S. District Court for the Southern District of New York
over alleged violations of Federal Securities Laws by Sogou Inc. in connection with certain allegedly false and misleading statements made in connection with the Company’s initial public offering on November 9, 2017 (the “IPO” or the “Offering”)

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.

Shares of Sogou Inc. (NYSE: SOGO) declined from as high as $15.50 per share in June 2018 to as low as $5.71 per share on October 19, 2018.

According to the complaint the plaintiff alleges behalf of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired Sogou Inc. (NYSE: SOGO) American Depository Shares (“ADS’s”) pursuant and/or traceable to Sogou’s Registration Statement and Prospectus issued in connection with the Company’s IPO on November 9, 2017, that the defendants violated Federal Securities Laws.

More specifically, 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.