PHILADELPHIA , Dec. 3, 2020 /PRNewswire/ -- Berger Montague is investigating potential securities fraud claims against JOYY, Inc. ("JOYY" or the "Company") on behalf of investors who purchased JOYY securities (NASDAQ: YY) between April 28, 2016 and November 18, 2020 (the "Class Period").
If you purchased JOYY securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Donnell Much at dmuch@bm.net or (215) 875-4667, or contact us at www.bergermontague.com/joyy .
A recently filed lawsuit accuses JOYY and its senior management of failing to disclose to investors that the Company's revenues were vastly overstated, that it was artificially inflating the number of users on its platforms, and that the Company's recent acquisition of Bigo Technology was effected to benefit corporate insiders, including JOYY's co-founder and CEO.
According to the complaint, a report published on November 18, 2020 by research firm Muddy Waters Capital alerted the market to the truth about JOYY. The report accused JOYY of being "a multibillion-dollar fraud" and claimed that approximately 84% of its consolidated revenue was fraudulent. The extensive and highly detailed report also asserted, among many other things, that the Company overstated its revenues by using bots to create the appearance of traffic on its platforms and to conduct improper round-tripping transactions.
Upon publication of the Muddy Waters report, the price of JOYY's American Depositary Receipts ("ADRs") fell $26.53 – or 26% – in a single day, from a closing price of $100.19 on November 17, 2020 to a closing price of $73.66 on November 18, 2020 .
If you purchased JOYY securities, including ADRs, during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is January 19, 2021 . You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding JOYY, Inc. are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague , with offices in Philadelphia , Minneapolis , Washington, D.C. , and San Diego , has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States .
Contacts
Andrew Abramowitz , Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Donnell Much , Associate
Berger Montague
(215) 875-4667
dmuch@bm.net
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SOURCE Berger Montague