Opera Limited

On January 16, 2020, Hindenburg Research published a report alleging, among other things, that “Opera’s apps are now in black and white violation of numerous Google [Play Store] rules” on predatory, short-term lending, and misleading apps and that Opera had spent $9.5 million to purchase a business already funded and operated by Opera.

On this news, Opera’s share price fell $1.69, or over 18%, to close at $7.33 per share on January 16, 2020, thereby injuring investors.

The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Opera’s sustainable growth and market opportunity for its browser applications was significantly overstated; (2) Defendants’ funded, owned, or otherwise controlled loan services applications and/or businesses relied on predatory lending practices; (3) all the foregoing, once revealed, were reasonably likely to have a material negative impact on Opera’s financial prospects, especially with respect to its lending applications’ continued availability on the Google Play Store; and (4), that as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.