Securities class action litigation has been filed on behalf of investors in JOYY Inc. (“JOYY” or the ”Company“) (Nasdaq: YY). If you purchased or otherwise acquired the publicly traded securities of JOYY between April 28, 2016 and November 18, 2020, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than January 19, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
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 Securities 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.