Weibo Wins Dismissal With Prejudice of Securities Fraud Claims

Skadden secured the dismissal with prejudice of a putative securities fraud class action against China-based Weibo Corporation. The plaintiff alleged that, from the company’s 2014 IPO through 2017, it misled investors about its compliance with Chinese regulations requiring a license to engage in the transmission of online audio-video material. On June 7, Judge Stanley Chesler of the U.S. District Court for the District of New Jersey granted the company’s motion to dismiss the action in its entirety, holding that the plaintiff failed to plead any affirmative misrepresentation, misleading omission or actionable opinion and rejected many of the plaintiff’s allegations as “no more than mere hyperbole.”