Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased DouYu International Holdings Limited ("DouYu " or "the Company") (NASDAQ: DOYU) American Depositary Shares (“ADSs” or “shares”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s July 16, 2019 initial public offering (the "IPO" or "Offering"). DouYu investors have until May 26, 2020 to file a lead plaintiff motion.
If you suffered a loss on your DouYu investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email shareholders@glancylaw.com or visit our website at www.glancylaw.com to learn more about your rights.
In July 2019 the Company completed its initial public offering ("IPO") priced at $11.50 per ADS. On December 18, 2019, Yahoo Finance listed the Company as one of "the 5 worst performing IPOs of 2019". Then on February 27, 2020, DouYu dropped 32% from the IPO to $7.79 per ADS.
The complaint alleges that the Registration Statement made false and/or misleading statements and/or failed to disclose: (1) that DouYu’s risks related to its top streamers had materialized, including that: (a) a top streamer was actively misrepresenting herself on DouYu’s platform; and (b) the costs associated with retaining top streamers was swelling; (2) that DouYu did not ensure that all of its products were fully compliant with current regulatory requirements before those products became available on line; and (3) that key interactive features of DouYu’s “lucky draw” were noncompliant with current regulatory requirements, requiring DouYu to remove them from operations, which negatively impacted user engagement activity and caused disappointing financial results.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you purchased DouYu ADSs pursuant and/or traceable to the IPO, you may move the Court no later than May 26, 2020 to 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200325005713/en/
Contacts:
Charles Linehan, 310-201-9150 or 888-773-9224
www.glancylaw.com
shareholders@glancylaw.com
