If you purchased JOYY securities, and/or would like to discuss your legal rights and options please visit JOYY Shareholder Class Action Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) JOYY dramatically overstated its revenues from live streaming sources; (2) the majority of users at any given time were bots; (2) the Company utilized these bots to effect a roundtripping scheme that manufactured the false appearance of revenues; (3) the Company overstated its cash reserves; (4) the Company’s acquisition of Bigo was largely contrived to benefit corporate insiders; and (5) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On November 18, 2020, Muddy Waters Research, an equity research firm, published a report about JOYY titled: “YY: You Can’t Make This Stuff Up. Well… Actually You Can.” The Muddy Waters Research Report detailed a series of problems with JOYY. Specifically, the report stated that the Company is a multibillion-dollar fraud” whose component business are a “fraction of the size it reports.” The Muddy waters report also noted that JOYY’s “reported user metrics, revenues and cash balances are predominantly 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.
If you wish to serve as lead plaintiff, you must move the Court no later than January 19, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased JOYY securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/joyyinc-yy-shareholder-class-action-lawsuit-stock-fraud-334/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
Matthew E. Guarnero
Bernstein Liebhard LLP