NEW YORK, March 26, 2020 (GLOBE NEWSWIRE) -- Abraham, Fruchter & Twersky, LLP, a nationally recognized securities class action and investor rights law firm, announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors who purchased the American Depository Shares (“ADSs”) of DouYu International Holding Limited (“DouYu” or the “Company”) (DOYU) in connection with the Company’s July 16, 2019 initial public offering (the “IPO” or the “Offering”). The deadline for investors to submit an application to be appointed as lead plaintiff of this litigation is May 26, 2020.
If you are an investor who suffered losses on your DouYu investment and would like to inquire about potentially pursuing claims to recover losses, please contact us by emailing SHandronobrien@aftlaw.com or by calling (212) 279-5050 ext. 1626.
In July 2019, DouYu completed its IPO priced at $11.50 per ADS. On December 18, 2019, Yahoo Finance listed DouYu as one of "the 5 worst performing IPOs of 2019.” Since the IPO, DouYu has traded as low as $6.50 per ADS, representing a 43% decline from the Offering price of $11.50 per ADS.
The Complaint, filed March 24, 2020, alleges that DouYu’s offering documents failed to disclose material facts in violation of the Securities Act of 1933. As alleged, the Registration Statement filed in connection with the Company’s IPO made false and/or misleading statements and/or failed to disclose: (1) that 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) that 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) that 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.
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Abraham, Fruchter & Twersky, LLP, which is based in New York and has an office in California, has extensive experience in shareholder and securities class action cases. The firm has been ranked among the leading class action law firms in terms of recoveries achieved for shareholders.
If you have any questions about this Notice, the action, your rights or your interests, please contact:
Sean M. Handron-O’Brien
ABRAHAM, FRUCHTER & TWERSKY, LLP
One Penn Plaza, Suite 2805
New York, New York 10119
Tel: (212) 279-5050 ext. 1626
Fax: (212) 279-3655