According to the Complaint, Pinduoduo Inc. is an e-commerce platform allowing users to participate in group buying deals. The Company was founded in 2015 and is based in Shanghai, China. On or around July 26, 2018, Pinduoduo completed its IPO, offering 85.6 million ADSs priced at $19.00 per share and raising $1.63 billion.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. In the Registration Statement and Prospectus issued in connection with Pinduoduo’s IPO, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Pinduoduo’s controls were ineffective to prevent third-party vendors from selling counterfeit goods on the Company’s online platform; (ii) consequently, Pinduoduo’s revenues and the number of active merchants using its platform were traceable in part to unlawful conduct and thus unsustainable; and (iii) as a result, Pinduoduo’s public statements were materially false and misleading at all relevant times.

On December 4, 2018, the Court issued an Order appointing Co-Lead Plaintiffs and Counsel. On January 11, 2019, the Court issued an Order consolidating cases. Lead Plaintiffs filed an amended Complaint on February 20, 2019. On February 22, Lead Plaintiffs filed a consolidated amended Complaint. Defendants filed a Motion to Dismiss the consolidated amended Complaint on April 2. On March 30, 2020, the Court issued an Order granting Defendants' Motion to Dismiss in its entirety.

Lead Plaintiffs filed a notice appealing the Court's Dismissal Order on April 29, 2020. On September 22, 2021, the Court of Appeals affirmed the District Court's dismissal Order.