Pinduoduo Suffers Big Drop After TV Manufacturer Accuses Site of Selling Counterfeits
In the post, the television maker urged Pinduoduo to immediately withdraw all the fake products carrying the “Skyworth” brand.
Pinduoduo Inc. (Nasdaq: PDD) shares plunged $2.10 per share on Monday, or almost 9 percent, a day after Skyworth, a Chinese television manufacturer, posted an announcement on its WeChat account, accusing Pinduoduo of selling counterfeit Skyworth TVs.
"We have noticed that recently, there have been enormous sales of counterfeit Skyworth TVs on Pinduoduo, which seriously undermines the rights of consumers and our company brand," the statement said.
Pinduoduo, which just completed its $1.6 billion initial public offering on Nasdaq last week at $19 per share, closed Monday at $22.50 per share.
SkyWorth Announcement in Chinese
In the online post, the Shenzhen-based company urged Pinduoduo to immediately withdraw all the fake products carrying the "Skyworth" brand. The company also encouraged all consumers to buy SkyWorth products on its official website or call its customer hotline for product authentication.
Pinduoduo did not immediately respond to the accusations.
This was not the first time the e-commerce platform was accused of selling knockoffs. Just days before Pinduoduo's IPO, a Chinese diaper maker called Daddy's Choice filed a lawsuit in New York accusing Pinduoduo of knowingly allowing the sale of knockoff products bearing the Daddy's Choice name.
Backed by Chinese tech giant Tencent Holdings Ltd., the stock of the unicorn Pinduoduo (Nasdaq: PDD) soared more than 44 percent on its trading debut on July 26 as it completed one of the largest IPOs in New York by a Chinese company in four years.
Shares in Pinduoduo, which went public on Nasdaq just last week, took a big hit at the open Monday
after the company was accused of knowingly selling counterfeit TVs.
(Source: Thomson Reuters Eikon)