The Newsroom

Investigations  /  08.25.2020

Investigation of Qutoutiao Inc.

You Have Legal Options

Qutuotiao Inc. (QTT) Accused of Misleading Shareholders 

Qutuotiao held its IPO on September 14, 2018, offering 13.8 million shares at $7.00 per share for gross proceeds of approximately $85.8 million.  As noted in the Company’s IPO documents, a majority of the Company’s revenues comes from advertising and a decline in advertising revenue can harm the business.  On December 10, 2019, Wolfpack Research published a report alleging that the Company had overstated revenues and had replaced its third-party advertising agent with a related party, thereby bypassing the agent’s oversight and allowing the Company to “perpetrate the unmitigated ad fraud that [Wolfpack] observed in [its] sample.”  Then, on July 15, 2020, a report revealed that Qutoutiao had allowed ads on its platform that promoted impossible claims from weight loss products.  One such ad offered free weight-loss products valued at $14,300 that would help users lose more than 30 pounds per month.  Such false advertisements are subject to regulatory scrutiny and can cause the Company reputational harm and declining advertising revenue.  Finally, on July 17, 2020, Chinese media reported that Qutourtiao’s app had been removed from domestic Android app stores. Since these disclosures, the stock is trading at $2.55, down significantly from its $7.00 IPO price.

If you purchased Qutuotiao Inc. (QTT) securities traceable to its September 2018 IPO and/or between September 14, 2018 and July 15, 2020, you have until October 19, 2020, to ask the court to appoint you lead plaintiff for the class.

  • If you would like more information about your rights and potential remedies please send us a message. 

  • Please Note: Neither the submission to nor the receipt of information by Robbins LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

How can we help you?

CONTACT US TODAY | 1 800 350 6003 or [email protected]

Tell us your concerns