Sogou targeted by a class action due to an increase in counterfeit sales
The Sogou search engine faces a class action brought by investors who claim to have been unaware of serious regulatory problems when it was listed on the New York Stock Exchange (NYSE) in November 2017. The Sogou company allegedly failed to specify the Chinese authorities were investigating an increase in sales of counterfeits.
According to the complaint, “Chinese regulators were analyzing Sogou 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“, which necessarily leads to increased expenses.
This new class action recalls that brought against Pinduoduo in summer 2018.