RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Sea Limited (“Sea”) (NYSE: SE). The action charges Sea with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Sea’s materially misleading statements and omissions to the public, Sea’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: SEPTEMBER 19, 2023
CLASS PERIOD: APRIL 23, 2022 THROUGH MAY 15, 2023
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
SEA’S ALLEGED MISCONDUCT
The Class Period begins on April 23, 2022, the day after Sea filed an annual report with the SEC, reporting the company’s financial and operational results for the quarter and year ended December 31, 2021. The annual report represented that a large and growing user base benefitted Sea’s monetization efforts and that synergies among the company’s three businesses allowed the company to increase its user base, and monetization of that user base, in a cost-effective manner. Throughout the Class Period, Defendants consistently touted purported synergies among Sea’s three core businesses as enabling the company to grow its user base and loan book in an efficient, cost-effective manner, while managing risks impacting the company’s profitability.
On May 16, 2023, Sea issued a press release announcing its financial results for the first quarter of 2023. Sea reported, among other things, first-quarter earnings that fell significantly short of expectations due to a sharp increase in loan loss reserves. Specifically, Sea stated that "[o]ur provision for credit losses increased by 120.5% to US$177.4 million in the first quarter of 2023 from US$80.5 million in the first quarter of 2022, primarily driven by expansion to a broader user base and the growth of our loan book.” Additionally, Sea disclosed that their previous CIO resigned and had joined Sea's Board of Directors.
Following this news, Sea's American Depositary Share (ADS) price fell $15.62 per ADS, or 17.74%, to close at $72.45 per ADS on May 16, 2023.
WHAT CAN I DO?
Sea investors may, no later than September 19, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Sea investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Sea, captioned Yahya Muraweh v. Sea Limited, et al. and docketed under 23-cv-01455, is filed in the United States District Court for the District of Arizona before the Honorable Douglas Leroy Rayes.
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WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.