DouYu International Holdings Limited
The law firm of Kirby Mcinerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired DouYu International Holdings Limited (“DouYu” or the “Company”) (NASDAQ: DOYU) securities pursuant and/or traceable to the Company’s July 16, 2019 Initial Public Offering (“IPO”). Investors have until May 26, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) 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.
The Company’s registration statement was declared effective on July 16, 2019. Thereafter, the Company conducted its IPO, selling more than 67.3 million DouYu ADSs at $11.50 per ADS and generating more than $774 million in gross offering proceeds.
The Company’s ADSs have since cratered, trading as low as $6.50 per ADS, a decline of over 43% from the IPO price.
If you acquired DouYu securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.