NEW YORK, June 11, 2021 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of CooTek (Cayman) Inc. (“CooTek” or the “Company”) (NYSE: CTK). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether CooTek and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
In September 2018, CooTek conducted its initial public offering (“IPO”), issuing 4.35 million American Depositary Shares (“ADSs”) priced at $12.00 per ADS.
Then, on December 15, 2020, CooTek announced its unaudited financial results for the third quarter of 2020. CooTek disclosed an operating loss of $1.1 million, which the Company stated “mainly relates to compensation payment to victims of alleged misconducts of certain third-party advertisers perpetrated on the Group’s platform that the Group deposited to an escrow account controlled by a local authority conducting investigation on the advertisers.”
On this news, CooTek’s ADS price fell $1.99 per ADS, or 31.44%, to close at $4.34 per ADS on December 15, 2020.
Then, on June 3, 2021, CooTek announced its unaudited financial results for the first quarter of 2021. CooTek disclosed, among other results, non-GAAP earnings per share of –$0.18, missing consensus estimates by $0.02.
On this news, CooTek’s ADS price fell $0.28 cents per share, or 13.59%, to close at $1.78 per share on June 3, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP