SAN FRANCISCO, Jan. 16, 2020 /PRNewswire/ -- Hagens Berman urges Opera (NASDAQ: OPRA) investors who have suffered significant losses to submit their losses now to learn if they qualify to recover their investment losses. The firm is actively investigating whether the company and senior executives violated federal securities laws, and certain investors may have valuable claims.
Opera Limited (OPRA) Investigation:
The investigation concerns whether Opera concealed its noncompliance with Google's rules and certain related-party business transactions.
After going public in mid-2018, Opera has significantly pivoted from its core browser business to short term lending in Africa and India, operating primarily through apps offered on Google's Play Store. Indeed, Opera's short-term loan business now accounts for over 40% of the company's total revenue.
On Jan. 16, 2020, however, Hindenburg Research published a scathing report about the company, accusing Opera of engaging in predatory short-term loans in Africa and India, deploying deceptive "bait and switch" tactics to lure borrowers, and charging egregious interest rates ranging from about 365% - 876%. According to the report, Opera's apps are now "in black and white violation of numerous Google rules," and therefore "this entire line of business is at risk of disappearing or being severely curtailed."
In addition, the Report accuses Opera's chairman and CEO, Yahui Zhou, of diverting $40 million of company proceeds to entities owned or influenced by Zhou through a slew of questionable related-party transactions that were not adequately disclosed to investors.
In response, the price of Opera ADRs fell sharply during intraday trading on Jan. 16, 2020. Opera ADRs now trade sharply below Opera's IPO and secondary offering prices.
"We're focused on investors' losses and determining whether Opera failed to adequately disclose (i) the risks posed by its short-term loan business and (ii) questionable related-party deals," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased ADRs of Opera and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Opera Limited should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:OPRA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP