BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased DouYu International Holdings Limited ("DouYu " or "the Company") (NASDAQ: DOYU) American Depositary Shares (“ADSs” or “shares”) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s July 16, 2019 initial public offering (the "IPO" or "Offering"). DouYu investors have until May 26, 2020 to file a lead plaintiff motion.
Investors suffering losses on their DouYu investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
In July 2019 the Company completed its initial public offering ("IPO") priced at $11.50 per ADS. On December 18, 2019, Yahoo Finance listed the Company as one of "the 5 worst performing IPOs of 2019". Then on February 27, 2020, DouYu dropped 32% from the IPO to $7.79 per ADS.
The complaint alleges that the Registration Statement made false and/or misleading statements and/or failed to disclose: (1) that 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) that 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) that 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.
If you purchased DouYu ADSs, have information or would like to learn more about these claims, or 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 howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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