San Francisco, California--(Newsfile Corp. - October 5, 2022) - Hagens Berman urges Tuya Inc. (NYSE: TUYA) investors with significant losses to submit your losses now.
Relevant Period: Mar. 15, 2021 - Aug. 9, 2022
Lead Plaintiff Deadline: Oct. 11, 2022
Visit:www.hbsslaw.com/investor-fraud/TUYA
Contact An Attorney Now:TUYA@hbsslaw.com
844-916-0895
Tuya Inc. (TUYA) Securities Class Action:
The case is brought on behalf of all investors who purchased Tuya ADS in or traceable to the company's March 2021 IPO.
Specifically, Tuya's IPO documents touted the company's historical growth, claiming it was driven by the "thriving ecosystem" of customers, made up of brands, OEMS, industry operators and system integrators, who generated revenue for Tuya by selling products through e-commerce marketplaces such as Amazon.com
The statements allowed Tuya to go public and raise over $946 million in gross proceeds.
The complaint alleges the IPO documents failed to disclose that: (1) a material portion of Tuya's China-based customers were engaged in the widespread and systematic manipulation of reviews and product offerings in violation of Amazon.com's terms of use; (2) prior to the IPO, a consumer investigation and data breach had exposed 13 million records of organized fake review scams linked to over 200,000 Amazon account profiles; and (3) as a result, there was a substantial risk that a material portion of Tuya's significant customers would be barred from using Amazon.com's platform, negatively impacting Tuya's business, revenues, earnings and prospects.
Shortly after the IPO, the financial press reported that Amazon.com suspended hundreds of thousands accounts after discovering a massive fake review scam and closed 340 online stores of one of its largest Chinese retailers in the first half of this year.
By Aug. 18, 2021, when Tuya announced disappointing Q2 2021 results, management blamed the results and outlook on Amazon.com's strict execution of seller policy.
As a result, Tuya ADSs are trading almost 90% below their IPO price.
"We're focused on investors' losses and proving Tuya misled investors about its purported customers," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Tuya and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Tuya should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TUYA@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/139691
