E-Commerce Giant PDD Hid Malware, Forced Labor, Suit Says (1)

PDD Holdings Inc. failed to disclose two hot-button issues, customer privacy and products made with forced labor, that attracted regulatory scrutiny and negative publicity to the web commerce company, an investor alleges in a suit filed Tuesday.

PDD, which is incorporated in the Cayman Islands, operates the China-based Pinduoduo shopping and social network and Temu e-commerce platform. Investor Blake Baxter says in a proposed class action filed in the US District Court for the Eastern District of New York that PDD’s American depositary shares—which allow US residents to buy shares traded on foreign exchanges—dropped in value when news reports brought ...