Pinduoduo is an online shopping platform from China, that combines several e-commerce techniques, including coupons, and discounts for ‘aggregated sales’ (similar to the model of Massdrop). Pinduoduo is backed by Tencent.
It filed a Form F-1 in connection with a U.S. IPO on July 16.
On July 19, a Chinese diaper company, Beijing’s Daddy Choice, sued Pinduoduo, in the Southern District of NY, alleging that infringing goods were sold on the platform, with hte knowledge of Pinduopduo (complaint and blog post here).
On July 25, Pinduoduo raised $1.6 billion in its IPO, which values the company at $29.6 billion. Shares traded as high as $27.54 on July 26.
On July 31, the Chinese State Administration for Market Regulation announced that it was investigating Pinduopduo over the reports of infringing goods being sold on the platform.
Yesterday, August 1, the price fell as low as $19.28.
By the end of yesterday, securities lawyers were soliciting Pinduoduo investors in connection with ‘possible violations of federal securities laws.’