The Law Offices of Frank R. Cruz Announces Investigation of DouYu International Holdings Limited (DOYU) on Behalf of Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of DouYu International Holdings Limited (“DouYu” or the “Company”) (NASDAQ: DOYU) on behalf of investors concerning the Company’s possible violations of federal securities laws.

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On March 29, 2022, after market hours, The Wall Street Journal published an article detailing new regulations being drafted by Chinese authorities regarding the country’s live-streaming industry, including plans to set a daily limit on how much money live-streamers can receive from fans, as well as tighter censorship over content, in an effort to “[exert] greater influence over the content consumed by its young people.” On this news, DouYu’s stock price fell $0.15, or 6.4%, to close at $2.21 per ADS on March 30, 2022, thereby injuring investors.

Then, on February 27, 2023, the Cyberspace Administration of China (“CAC”) released a statement in which it included DouYu in a list of platforms having “harmful information such a spreading pornographic drainage, vulgarity, [and] violent abuse.” The CAC claimed that “[in] order to solve the problem, [it would] continue to increase the crackdown on violations of laws and regulations, continue to do a good job in the work of ‘sweeping pornographic and illegal activities’ online, and effectively safeguard the people's online cultural rights and interests.” On this news, DouYu’s stock price fell $0.07, or 5.3%, to close at $1.25 per ADS on February 28, 2023.

Then, on May 8, 2023, after the markets closed, the CAC announced that “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.” The following morning, May 9, 2023, before the market opened, DouYu issued a press release stating 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’s stock price fell $0.098, or 9.3%, on May 9, 2023, thereby injuring investors further.

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If you purchased DouYu securities, 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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