BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors of Xunlei Limited ("Xunlei" or the "Company") (NASDAQ: XNET). Investors who purchased or otherwise acquired Xunlei securities between June 24, 2014 and May 20, 2015, inclusive (the "Class Period"), have until August 7, 2015, to serve as lead plaintiff in the class action.
According to the lawsuit, Xunlei operates an internet platform in China based on cloud computing to provide users with quick and easy access to digital media content through its core products and services. One of the company’s premier products was Xunlei Kankan, a video-on-demand service permitting users to view content on a variety of devices. On June 24, 2014, Xunlei completed its IPO of 7,315,000 American depositary shares (“ADS”), at a price of $12.00 per ADS, indicating to investors strong potential growth in the areas of content distribution, especially the growth of its Kankan video-on-demand service.
Then, on May 21, 2015, the Company issued a press release announcing the unaudited financial results for the first quarter ended March 31, 2015. Therein, the Company stated in relevant part that revenues had decreased 8.4% from the corresponding period of last year, and a 14.9% decrease from the previous quarter. The Company also reported an operating loss of $1.4 million, and attributed the poor financial results to, “transition to mobile internet,” and the divestiture of Xunlei’s Kankan service. On this news, ADSs of Xunlei declined $1.69 per share, or nearly 15%, to close on May 21, 2015 at $9.71 per share, on unusually heavy volume.
If you purchased shares of Xunlei prior to May 20, 2015. you may move the Court no later than August 7, 2015 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, 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 email@example.com, or visit our website at http://www.howardsmithlaw.com.
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