NEW YORK, July 3, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of DouYu International Holdings Ltd. ("DouYu" or the "Company") (NASDAQ: DOYU). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether DouYu and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On March 29, 2022, The Wall Street Journal published an article entitled "China Plans New Restrictions in Its Booming Live-Streaming Sector", which warned of coming regulatory hurdles likely to impact DouYu and other companies. On this news, DouYu's American Depositary Share ("ADS") price fell $0.15 per ADS, or 6.35%, to close at $2.21 per ADS on March 30, 2022.
On April 26, 2022, an article entitled "DouYu Facing the Tightening Noose of Regulations" was posted on the website Seeking Alpha, detailing steps that the Chinese government was taking to address concerns related to video-game addiction, which purportedly "add to the red flags surrounding DOYU". On this news, DouYu's ADS price fell $0.11 per ADS, or 6.74%, to close at $1.52 per ADS on April 26, 2022.
On February 27, 2023, China's Central Cyberspace Affairs Commission ("CAC") posted a statement on its website, detailing more "[i]n-depth governance of the online environment", specifically naming DouYu as a platform that would be subject to more robust regulatory enforcement. On this news, DouYu's ADS price fell $0.07 per ADS, or 5.3%, to close at $1.25 per ADS on February 28, 2023.
On May 8, 2023, the CAC released a statement on its website entitled "The working group of the cyberspace department entered the Douyu platform". The release stated that "[i]in response to serious ecological problems such as pornography and vulgarity on the Douyu platform, on May 8, the State Internet Information Office instructed the Hubei Provincial Internet Information Office to send a working group to the Douyu platform to carry out a one-month centralized rectification supervision."
On May 9, 2023, DouYu filed a current report on Form 6-K with the U.S. Securities and Exchange Commission, which contained a press release. This press release stated, in pertinent part, that the "CAC has sent an inspection team to the Company due to certain alleged violations of content rules and regulations on its platform. The CAC team is expected to conduct a one-month on-site inspection of the Company's content platform, which DouYu will fully cooperate with. DouYu is also concurrently conducting a comprehensive internal review of its content monitoring system. As a platform committed to regulatory compliance and the safety of its user community, DouYu plans to implement all necessary remedial measures based on the CAC inspection and its own internal review. DouYu is expected to maintain its normal operations during this period of time." On this news, DouYu'sADS price fell $0.098 per ADS, or 9.33%, to close at $1.05 per ADS on May 9, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
