DouYu International Holdings Limited
Lead Plaintiff Deadline: 05/26/2020
SUMMARY OF CASE:
A securities class action has been filed against DouYu International Holdings Limited (DOYU) on behalf of those who purchased or otherwise acquired shares or DouYu American Depositary Shares (“ADSs”) in its July 16, 2019 initial public offering (the “IPO” or the “Offering”) or purchased ADSs thereafter in the stock market pursuant and/or traceable to the Company’s Registration Statement issued in connection with the IPO. This case has been filed in the USDC – C.D. Cal.
The Complaint alleges that the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) 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) 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) 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.