China’s Cheetah Mobile Wins Dismissal of Securities Class Action

Skadden obtained a dismissal of a putative consolidated securities class action brought against Cheetah Mobile, Inc. The plaintiffs, purported company shareholders, asserted that Cheetah made several misstatements regarding compliance with Google Play store policies, compliance with Chinese law and attempts to remediate its relationship with Facebook. On March 30, 2022, Judge Michael W. Fitzgerald of the U.S. District Court for the Central District of California granted the company’s motion to dismiss the action with leave to amend. The court held that the plaintiffs had not adequately alleged that the company’s statements were false or misleading and found Cheetah’s stated risk analysis of the impact of losing access to the Google Play app store to be accurate.