NEW YORK, April 21, 2020 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Central District of California 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").
All investors who purchased ADSs of DouYu International Holdings Limited and incurred losses are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the shares of DouYu International Holdings Limited, you may, no later than May 26, 2020, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of DouYu International Holdings Limited.
The filed complaint alleges that the Registration Statement made false and/or misleading statements and/or failed to disclose:
- that DouYu's risks related to its top streamers had materialized, including that a top streamer was actively misrepresenting herself on DouYu's platform and the costs associated with retaining top streamers was swelling;
- 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
- 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.
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 to a level 32% below the IPO offering price to $7.79 per ADS.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP