NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of DouYu International Holdings Limited (NASDAQ: DOYU) resulting from allegations that DouYu may have issued materially misleading business information to the investing public.
DouYu’s July 16, 2019 registration statement contained statements that were materially inaccurate, misleading, and/or incomplete because they failed to disclose that: (1) DouYu’s risks related to its top streamers had materialized, including that: (a) a top streamer was actively misrepresenting herself on DouYu’s platform, and (b) the costs associated with retaining top streamers was swelling; (2) DouYu did not ensure that all of its products were fully compliant with current regulatory requirements before those products became available on line; and (3) key interactive features of DouYu’s “lucky draw” were noncompliant with current regulatory requirements, requiring DouYu to remove them from operations, which negatively impacted user engagement activity and caused disappointing financial results.
In response to all this information, the Company’s ADSs have cratered, trading as low as $6.50 per ADS since going public, representing a decline of over 43% from the Offering Price.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by DouYu investors. If you purchased DouYu securities, please visit the firm’s website at http://www.rosenlegal.com/cases-register-1810.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at email@example.com or firstname.lastname@example.org.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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