Tencent Music Entertainment Group
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of those who acquired Tencent Music Entertainment Group (“Tencent” or the “Company”) (NYSE: TME) American Depository Shares (“ADRs”) from March 22, 2021 through March 29, 2021, inclusive (the “Class Period”). Investors have until December 27, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Tencent is the leading online music and audio entertainment platform in China, operating the country’s highly popular and innovative music apps.
Both Goldman Sachs and Morgan Stanley are global financial services institutions that served as prime brokers for Archegos Capital Management (“Archegos”), a family office with $10 billion under management, helping Archegos make trades and lending it capital in the form of margin lending.
During the week of March 22, 2021, Defendants sold a large number of Tencent shares while in possession of material, non-public information. According to subsequent media reports, Defendants unloaded large block trades late Thursday, March 25, 2021, before the Archegos story reached the public, consisting of shares of Archegos’ doomed bets, including billions worth of Tencent securities, sending Tencent’s stock into a complete tailspin. On this news, the Company’s share price declined by approximately 34.1% during the week of March 22, 2021 to March 29, 2021.
The lawsuit alleges throughout the Class Period, Goldman Sachs and Morgan Stanley sold a large amount of Tencent shares during the Class Period while in possession of material, non-public information about Archegos and its need to fully liquidate its position in the Company because of margin call pressure. As a result of these sales, Defendants Goldman Sachs and Morgan Stanley avoided billions in losses combined.