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JOYY Inc. (NASDAQ: YY) Investor Securities Class Action Lawsuit 11/20/2020

  • If you purchased shares of JOYY Inc. (NASDAQ: YY), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
JOYY Inc.
Security
NASDAQ: YY

Case Name
JOYY Shareholder Class Action Lawsuit 11/20/2020
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Central District of California

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Summary

May 12, 2021 - An amended complaint was filed.

November 20, 2020 - An investor in shares of JOYY Inc. (NASDAQ: YY) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by JOYY Inc. in connection with certain allegedly false and misleading statements made between April 28, 2016 and November 18, 2020.

China based JOYY Inc., through its subsidiaries, operates a social media platform in the People's Republic of China and internationally. JOYY Inc. reported that its annual Total Revenue rose from over 15.76 billion CNY in 2018 to over 25.57 billion CNY in 2019, and that its EBIT increased from over 2.54 billion CNY in 2018 to over 4.47 billion CNY in 2019.

On November 18, 2020, a report was published entitled YY: You Can’t Make This Stuff Up. Well…Actually You Can[.] The report described a series of issues involving JOYY Inc., stating that the Company is a multibillion-dollar fraud. Further, the report stated We conclude that YY’s component businesses are a fraction of the size it reports, and that the company’s reported user metrics, revenues, and cash balances are predominantly fraudulent[,] and that [a]pproximately 84% of YY’s reported consolidated revenue appears to be fraudulent. Shares of JOYY Inc. (NASDAQ: YY) declined from $108.21 per share on November 17, 2020 to as low as $70.30 per share on November 18, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of JOYY Inc. (NASDAQ: YY) common shares between April 28, 2016 and November 18, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between April 28, 2016 and November 18, 2020, the defendants made false and/or misleading statements and/or failed to disclose that JOYY dramatically overstated its revenues from live streaming sources, that the majority of users at any given time were bots, that the Company utilized these bots to effect a roundtripping scheme that manufactured the false appearance of revenues, that the Company overstated its cash reserves, that the Company’s acquisition of Bigo was largely contrived to benefit corporate insiders, and that as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.