The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired JOYY Inc. ("JOYY" or the "Company") (YY) - Get Report securities during the period from April 28, 2016 through November 18, 2020, inclusive (the "Class Period"). Investors have until January 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On November 18, 2020, Muddy Waters Research published a report entitled "YY: You Can't Make This Stuff Up. Well...Actually You Can," alleging that the Company "is a multibillion-dollar fraud." The report concluded "that YY's component businesses are a fraction of the size it reports, and that the company's reported user metrics, revenues, and cash balances are predominantly fraudulent[,]" and that "[a]pproximately 84% of YY's reported consolidated revenue appears to be fraudulent." On this news, JOYY American depositary shares ("ADSs") price fell $26.53 per ADS, or approximately 26.5%, to close at $73.66 per ADS on November 18, 2020.
The complaint alleges that throughout the Class Period, 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 that: (1) JOYY dramatically overstated its revenues from live streaming sources; (2) the majority of users at any given time were bots; (3) the Company utilized these bots to effect a roundtripping scheme that manufactured the false appearance of revenues; (4) the Company overstated its cash reserves; (5) the Company's acquisition of Bigo was largely contrived to benefit corporate insiders; and (6) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
If you acquired JOYY securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs' law firm concentrating in securities, antitrust, and whistleblower litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney's website: www.kmllp.com.
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