| COMPANY |
JOYY Inc. |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
20-cv-10611 |
| JUDGE |
The Honorable Stanley Blumenfeld, Jr. |
| CLASS PERIOD |
April 28, 2016 - November 18, 2020 |
| SECURITY TYPE |
American Depository Receipts |
Case Background:
On November 20, 2020, the initial complaint in this securities class action was filed against JOYY Inc. (“JOYY” or the “Company”) and certain of JOYY’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action brought on behalf of all persons who purchased or otherwise acquired JOYY securities between April 28, 2016 through November 18, 2020, (the “Class Period”) both dates inclusive.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and financial results. Specifically, the complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) JOYY dramatically overstated its revenues from live streaming sources; (2) the majority of users at any given time were bots; (2) the Company utilized these bots to effect a round tripping scheme that manufactured the false appearance of revenues; (3) the Company overstated its cash reserves; (4) the Company’s acquisition of Bigo was largely contrived to benefit corporate insiders; and (5) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
Current Status of Case:
On May 12, 2021, Lead Plaintiffs filed an amended complaint (the “Complaint”). On November 5, 2021, the Court granted Defendants’ Motion to Dismiss and gave Lead Plaintiffs’ leave to amend the complaint. On December 6, 2021, Lead Plaintiffs filed their second amended complaint (the “Amended Complaint”). On March 10, 2022, the Court granted Defendants’ Motion to Dismiss. This action has concluded.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.