Cheetah Mobile, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Cheetah Mobile, Inc. (“Cheetah Mobile” or the “Company”) (NYSE: CMCM) securities during the period from March 25, 2019 through February 20, 2020. Investors have until August 25, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) certain of Cheetah Mobile’s apps were not compliant with the terms of its agreements with Google; (ii) as a result, there was a reasonable likelihood that Google would terminate its advertising contracts with the Company; (iii) as a result of the foregoing, the Company’s ability to attract new users would be adversely impacted; and (iv) as a result, the Company’s revenue was reasonably likely to decline.
On February 21, 2020, before the market opened, the Company disclosed that its Google Play Store, Google AdMob, and Google AdManager accounts were disabled on February 20, 2020 “because some of the Company’s apps had not been compliant with Google policies, resulting in certain invalid traffic.” On this news, the Company’s share price fell $0.61, or 16.9%, to close at $2.99 per share on February 21, 2020.
If you acquired Cheetah Mobile securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.