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LOS ANGELES, Nov. 25, 2020 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of JOYY, Inc. ("JOYY" or "the Company") (NASDAQ:YY) investors that acquired securities between April 28, 2016, through November 18, 2020.
Investors are encouraged to contact attorney Lesley F. Portnoy , to determine eligibility to participate in this action, by phone 310-692-8883 or email , or click here to join the case.
It is alleged in this complaint that throughout the Class Period, defendants made misleading and/or false statements and/or failed to disclose that: (1) JOYY dramatically overstated its revenues relating to live streaming sources; (2) at any given time, the majority of users were bots; (2) these bots were utilized by JOYY to effect a roundtripping scheme that manufactured the false appearance of revenues; (3) JOYY overstated its cash reserves; (4) JOYY’s acquisition of Bigo was largely contrived in order to benefit corporate insiders; and (5) defendants' public statements were materially misleading and/or false at all relevant times, as a result. The lawsuit claims that investors suffered damages, when the true details entered the market.
Muddy Waters Research, an equity research firm, published a report about JOYY on November 18, 2020 titled: "YY: You Can't Make This Stuff Up. Well... Actually You Can." A series of problems with JOYY were detailed in the Muddy Waters Research Report. Specifically, the report stated that "JOYY is a multibillion-dollar fraud" whose component business are a "fraction of the size it reports." It was also noted in the Muddy Waters report that JOYY's "reported user metrics, revenues and cash balances are predominantly fraudulent."
JOYY American depositary shares ("ADSs") price fell $26.53 per ADS, or 26% on this news, to close at $73.66 per ADS on November 18, 2020.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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