Lead Plaintiff Deadline: 01/19/2021
SUMMARY OF CASE:
A securities class action has been filed against JOYY Inc. (YY) on behalf of persons or entities who purchased or otherwise acquired publicly traded JOYY securities between April 28, 2016 through November 18, 2020. This case has been filed in the USDC – C.D.CA.
The Complaint alleges that on November 18, 2020, Muddy Waters Research published a report entitled “YY: You Can’t Make This Stuff Up. Well…Actually You Can[.]” The Muddy Waters report described a series of issues involving JOYY, stating that the Company “is a multibillion-dollar fraud.” Further, the Muddy Waters report stated “We conclude that YY’s component businesses are a fraction of the size it reports, and that the company’s reported user metrics, revenues, and cash balances are predominantly fraudulent[,]” and that “[a]pproximately 84% of YY’s reported consolidated revenue appears to be fraudulent.”
On this news, the JOYY American depositary share (“ADS”) price fell $26.53 per ADS, or 26%, to close at $73.66 per ADS on November 18, 2020.