SHAREHOLDER ALERT: Investigation on Behalf of Sungy Mobile Limited Investors Announced by Law Offices of Howard G. Smith
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Sungy Mobile Limited (“Sungy Mobile” or the “Company”) (NASDAQ:GOMO) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by Sungy Mobile concerning the Company’s operations and financial performance.
“Mr. Winston Li has tendered his resignation as the chief financial officer of the Company, effective on August 31, 2014, due to personal reasons.”
Sungy Mobile provides mobile Internet products and services that focus on applications and mobile platform development in the People’s Republic of China and internationally. In the Company’s November 2013 initial public offering, Sungy Mobile offered 7 million American Depositary Shares (“ADS”) at $11.22 per ADS, with each ADS representing six Class A ordinary shares of the Company.
The investigation is related to the Company’s August 27, 2014, announcement of its second quarter 2014 financial results, and that Sungy Mobile’s chief financial officer has resigned. According to the Company, “Mr. Winston Li has tendered his resignation as the chief financial officer of the Company, effective on August 31, 2014, due to personal reasons.” The announcement of the CFO’s resignation follows Sungy Mobile’s IPO by less than one year.
For second quarter 2014, the Company reported per-share earnings of RMB 0.58 − below the Capital IQ Consensus Estimate of RMB 0.84 − and also issued downside guidance for the third quarter, in the range of RMB 90-95 million versus the Capital IQ Consensus Estimate of RMB 116.66 million. Following this news, Sungy Mobile stock dropped nearly 19%, or $1.96 per share, to a closing price of $8.44 per share on August 28, 2014.
If you purchased Sungy Mobile shares, if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.