Cheetah Mobile operates a platform that offers mobile and personal computer applications for its users and global content promotional channels. The Company is incorporated in Cayman Islands and its principal
executive offices are located in Beijing, People’s Republic of China. The Company’s subsidiary, Live.Me America Inc. maintains an office in West Hollywood, California. The Company’s securities are traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “CMCM.”
According to the law firm press release, Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Cheetah Mobile is using company-controlled accounts to inflate the gifting on Live.me; (2) Cheetah Mobile overstated its revenue; and (3) as a result, Cheetah Mobile’s public statements were materially false and misleading at all relevant times. On October 26, 2017, Prescience Point Research Group published a report asserting, among other things, that approximately 55% of Cheetah Mobile’s reported consolidated revenue does not exist and Cheetah Mobile uses company-controlled or “fake” accounts on Live.me to gift other users using company money. On this news, shares of Cheetah fell $0.37 per share or over 4% to close at $8.05 per share on October 26, 2017, damaging investors.