LEAD PLAINTIFF DEADLINE IS AUGUST 8, 2023
NEW YORK, June 15, 2023 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein") announces that a federal securities class action lawsuit has been filed against DouYu International Holdings Limited (NASDAQ: DOYU) ("DouYu" or the "Company") on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired DouYu
American Depositary Shares ("ADS") between April 30, 2021 and May 9, 2023, both dates inclusive (the "Class Period").
All investors who purchased shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than August 8, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
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DouYu purports to be "a leading game-centric live streaming platform in China and a pioneer in the eSports value chain."
The Company filed its 2020 Annual Report on April 30, 2021, in which it discussed regulatory requirements without mentioning substantial difficulties it would face if the Chinese government were to more aggressively enforce already existing content moderation laws (regardless of the Company's attempts to comply). Further, it did not sufficiently disclose its risk if there were to be new laws affecting live-streaming companies given government concern with issues such as video game addiction. The Company filed something similar for its 2021 Annual Report on April 29, 2022, with the added risk that "our platform may be misused by individuals or groups of individuals to engage in immoral, disrespectful, fraudulent or illegal activities..." but that it had implemented control procedures to detect such activities.
Then, on April 25, 2023, the Company filed its 2022 Annual Report with the Securities and Exchange Commission ("SEC") with a similar statement to the one above but with the added risk that "[i]n response to allegations of illegal or inappropriate activities conducted through our platform or any negative media coverage about us, PRC government authorities may intervene and hold us liable for noncompliance with PRC laws and regulations concerning the dissemination of information on the Internet and subject us to administrative penalties or other sanctions..."
By the time the 2022 Annual Report was filed with the SEC, the Company was already under investigation by the CyberSpace Administration of China (the "CAC") due to allegedly inappropriate content being disseminated on the DouYu platform. It is also alleged that the statements were misleading as they did not disclose that the Chinese government could take the above actions regardless of how well the Company actually complied with the law.
On February 27, 2023, after the American markets closed, the CAC had released a statement on its website entitled "[t]he Central Cyberspace Administration of China carefully organizes the work of "anti-pornography and anti-illegal activities" on the Internet to promote the formation of a good network ecology. The article announced a coming "crackdown" on online activity. This caused a drop of $0.07 or 5.3% in DouYu's ADS price the following day. Then, on May 8, 2023, after the American markets closed, the CAC released a statement on its website entitled "The working group of the cyberspace department entered the Douyu platform" – announcing a specific regulatory action against DouYu to solve "serious ecological problems such as pornography and vulgarity" by carrying out "a one-month centralized rectification supervision."
DouYu confirmed this the next day on Form 6-K filed with the SEC, and the ADS price fell $0.098 or 9.33% on May 9, 2023.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
