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SAN DIEGO, Aug. 17, 2021 /PRNewswire/ -- The Yalla Group class action lawsuit charges Yalla Group Limited (NYSE: YALA) and its CEO with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Yalla Group American Depository Shares ("ADSs") between September 30, 2020 and August 9, 2021, inclusive ("Class Period"). The Yalla Group class action lawsuit was commenced on August 13, 2021 in the Southern District of New York and is captioned Crass v. Yalla Group Limited, No. 21-cv-06854.
If you wish to serve as lead plaintiff of the Yalla Group class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Yalla Group class action lawsuit must be filed with the court no later than October 12, 2021.
CASE ALLEGATIONS: The Yalla Group class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that Yalla Group overstated its user metrics and revenue and, as a result, Yalla Group's public statements were materially false and misleading at all relevant times.
On May 19, 2021, Swan Street Research published a report entitled "Is Yalla Group a Multi $B Fraud? The 'Clubhouse of the Middle East' UAE Tech Unicorn that Never Was." The Swan Street report alleged, among other things, that Yalla Group has been inflating its financial metrics, including its user data and its revenue, and characterized Yalla Group's financial statements as "not credible." On this news, the price of Yalla Group ADSs fell more than 7%.
The next day, May 20, 2021, analyst The Bear Cave issued a report entitled, "Problems at Yalla Group," and Gotham City Research also tweeted that it was shorting Yalla Group ADSs. On this news, the price of Yalla Group ADSs fell an additional 6%.
Finally, on August 9, 2021, Yalla Group issued a press release entitled, "Yalla Group Limited Announces Unaudited Second Quarter 2021 Financial Results," which disclosed that Yalla Group had quarterly revenue of $66.6 million, which did not meet analysts' expectations. On this news, the price of Yalla Group ADSs fell nearly 19%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Yalla Group ADSs during the Class Period to seek appointment as lead plaintiff in the Yalla Group class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Yalla Group class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Yalla Group class action lawsuit. An investor's ability to share in any potential future recovery of the Yalla Group class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs' firm. Please visit https://www.rgrdlaw.com/firm.html for more information.
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Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
SOURCE Robbins Geller Rudman & Dowd LLP