PDD(PDD) GlobeNewswire News Room·2024-07-12 19:09Core Viewpoint - PDD Holdings Inc. is under investigation for potential securities fraud and unlawful business practices, particularly related to its Temu online marketplace, which has been accused of violating privacy laws [1][2]. Group 1: Legal Issues - Arkansas Attorney General Tim Griffin has filed a lawsuit against Temu, alleging it violates the Arkansas Personal Information Protection Act and is designed to collect user data without consent [2]. - The lawsuit describes Temu as "functionally malware and spyware," indicating serious concerns about its data collection practices [2]. Group 2: Market Reaction - Following the announcement of the lawsuit, PDD's American depositary receipt (ADR) price dropped by 131.94 per ADR on June 27, 2024 [2]. Group 3: Firm Background - Pomerantz LLP, the firm investigating PDD, is recognized for its expertise in corporate, securities, and antitrust class litigation, having recovered billions in damages for victims of securities fraud [3].