An investigation on behalf of investors of DouYu International Holdings Limited (NASDAQ: DOYU) shares over potential securities laws violations by DouYu International Holdings and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of DouYu International Holdings Limited (NASDAQ: DOYU) concerning whether a series of statements by DouYu International Holdings regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

China based DouYu International Holdings Limited operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming in China. On July 16, 2019, DouYu International Holdings Limited (NASDAQ: DOYU) announced its pricing of its initial public offering (IPO) of 67.38 million ADS shares at $11.5 per share for a gross total proceeds of approximately $775 million.

However, since the IPO, shares of DouYu International Holdings Limited (NASDAQ: DOYU) declined to as low as $7.41 per share on October 15, 2019.