SAN FRANCISCO–(BUSINESS WIRE)–The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired publicly traded securities of JOYY Inc. (“JOYY” or “the “Company”) (NASDAQ: YY) between April 28, 2016 and November 18, 2020, inclusive (the “Class Period”). If you purchased or otherwise acquired JOYY securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 19, 2021. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
JOYY investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the JOYY Class Litigation
JOYY, headquartered in Guangzhou, China, describes itself as a global social media platform, offering users around the world a uniquely engaging and immersive experience across various video-based content categories, such as live streaming, short-form videos and video communication. The Company was formerly known as YY, Inc. and changed its name to JOYY, Inc. on December 20, 2019.
The action alleges that, during the Class Period, defendants misrepresented and/or failed to disclose that: (1) JOYY overstated its revenues from live streaming sources; (2) the majority of users were bots; (3) the Company utilized these bots to effect a round-tripping scheme that manufactured the appearance of revenues; (4) the Company overstated its cash reserves; and (5) the Company’s acquisition of Bigo was designed to benefit corporate insiders.
On November 18, 2020, Muddy Waters Capital (“Muddy Waters”) published a report entitled “YY: You Can’t Make this Stuff Up. Well…Actually You Can.” According to the report, JOYY was “a multibillion-dollar fraud” with “component businesses . . . a fraction of the size it reports, and . . . reported user metrics, revenues, and cash balances [that] are predominantly fraudulent.” Citing a “year-long investigation,” Muddy Waters concluded that JOYY “is about 90% fraudulent.” Following this news, the price of JOYY’s American Depositary Receipts (“ADR”) fell $26.53 per ADR, or 26.48%, to close at $73.66 per ADR on November 18, 2020.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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