LOS ANGELES, Dec. 21, 2020 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired JOYY Inc. ("JOYY" or the "Company") (YY) - Get Report securities between April 28, 2016 and November 18, 2020, inclusive (the "Class Period"). JOYY investors have until January 19, 2021to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
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 26%, to close at $73.66 per ADS on November 18, 2020.
The complaint filed in this class action 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.
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If you purchased JOYY securities during the Class Period, you may move the Court no later than January 19, 2021to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased JOYY securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles