Nov 23, 2020, 16:55 ET
NEW YORK, Nov. 23, 2020 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Yalla Group Limited (NYSE: YALA) resulting from allegations that Yalla may have issued materially misleading business information to the investing public.
On or around September 30, 2020, Yalla conducted its initial public offering ("IPO"), issuing 18.6 million American depositary shares ("ADSs") priced at $7.50 per ADS. Then, on November 9, 2020, post-market, Yalla issued a press release announcing its unaudited financial results for the third quarter of 2020. Among other results, Yalla reported GAAP EPS of -$0.43, and costs and expenses of "$US64.7 million . . . compared with US$8.6 million in the same period last year." Yalla stated that "[t]he increase was primarily due to the recognition of share-based compensation of US$46.5 million upon our listing on the New York Stock Exchange on September 30, 2020. We granted a substantial amount of share options before the IPO but did not recognize any share-based compensation in prior periods because the exercisability of the options granted was conditional upon the completion of our IPO. Upon our listing on the NYSE, we immediately recognized a substantial amount of share-based compensation expenses associated with all outstanding options that were vested as of September 30, 2020."
On this news, Yalla's ADS price fell $2.01 per ADS, or 17.43%, to close at $9.52 per ADS on November 10, 2020.
Rosen Law Firm is preparing a securities lawsuit on behalf of Yalla shareholders. If you purchased securities of Yalla please visit the firm's website at http://www.rosenlegal.com/cases-register-1987.html to join the securities action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at [email protected] or [email protected].
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm's attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
SOURCE Rosen Law Firm, P.A.
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