NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national shareholder and consumer rights litigation firm, is investigating whether Sogou Inc. (“Sogou” or the “Company”) (NYSE: SOGO) or certain of its officers and directors violated federal securities laws. If you purchased Sogou American Depository Shares (“ADS”) in or after the Company’s November 2017 Initial Public Offering (“IPO”), you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.
Sogou is a Chinese public company and the owner and developer of the Sogou online search engine. The Company also develops Internet applications.
On or around November 9, 2017, Sogou held its IPO and sold 45,000,000 ADS at $13.00 per share.
In June and July 2018, Chinese media sources reported that Chinese authorities had ordered Sogou to remove illegal content from its search engine.
On July 30, 2018, Sogou announced its financial and operating results for the second quarter of 2018. The Company revised guidance for its third quarter 2018 financial results, citing an investigation by Chinese regulatory authorities and the implementation of “remedial measures,” which included a ten-day suspension of part of its advertising business, which was “expected to result in a one-time reduction in revenues in the third quarter of 2018.”
On news of the July 30 announcement, the price of Sogou ADS fell $0.78 from its previous close price – over 7.5% – to close at $9.55 on July 30, 2018.
On October 25, 2018, Sogou announced its financial and operating results for the third quarter of 2018, advising investors that revenues had fallen short of guidance by over $5 million and reporting disappointing guidance for 2019. On this news, the price of Sogou ADS fell $0.25, or 4.35%, over the following three trading sessions, closing at $5.50 on October 30, 2018.
As of January 3, 2018, Sogou ADS closed at $5.19 – 60% below the IPO price.
What You Can Do
If you purchased Sogou ADS, and you wish to discuss this investigation, please contact attorney Rhiana Swartz at (844) 818-6980, or at rswartz@scott-scott.com, or visit the Sogou investigation page on our website at https://scott-scott.com/investigation/sogou-inc.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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