Shareholder rights law firm Robbins LLP announces that a purchaser of Opera Limited (NASDAQ: OPRA) has sued the Company for alleged violations of the Securities Act of 1933 pursuant to its August 2018 initial public offering ("IPO") and for violations of the Securities Exchange Act of 1934 between July 27, 2018 and January 15, 2020. Opera provides mobile and PC web browsers in Ireland, Russia, and internationally.
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Opera Limited (OPRA) Accused of Misleading Investors in IPO
According to the complaint, Opera Limited completed its IPO on August 9, 2018, offering 9.6 million American Depositary Shares ("ADSs") at $12.00 per ADS and raising approximately $115.2 million in proceeds. At the time of its IPO and throughout the relevant period, Opera touted its sustainable growth and market opportunity for its browser applications; however, these numbers were materially overstated and the Company failed to disclose that it controlled loan service applications on the Google Play Store marketplace that relied on predatory lending practices. Then on January 16, 2020, Hindenburg Research published a report that had a "12-month price target of $2.60 on Opera, representing a 70% downside," citing the rapid decline of Opera's market share since its IPO and the Company's involvement in predatory short-term loan tactics that were in "black and white violation of numerous Google rules." On this news, Opera's ADS price fell $1.69 per share, or almost 19% to close at $7.33 and continues to trade below Opera's IPO price.
Opera Limited (OPRA) Shareholders Have Legal Options
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