May 26, 2015 (Shareholders Foundation) - An investigation on behalf of investors of Xunlei Ltd (NASDAQ:XNET) shares over potential securities laws violations by Xunlei Ltd and certain of its directors and officers in connection certain financial statements was announced.

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

Xunlei Ltd reported that its annual Total Revenue rose from $140.52 million in 2012 to 179.53 million in 2014 and that its Net Income increased from $0.5 million in 2012 to $10.81 million in 2014. Shares of Xunlei Ltd (NASDAQ:XNET) grew from $5.94 per share in March 2015 to as high as $11.40 per share on May 20, 2015.

Then on May 20, 2015, Xunlei Ltd announced its unaudited financial results for the first quarter that ended on March 31, 2015. Xunlei Ltd reported that its first quarter Revenue declined from $32.96 million in 2014 to $30.2 million in 2015 and that its first quarter Net Income declined from $4.6 million in 2014 to $2.4 million in 2015. Xunlei Ltd also issued its guidance for its second quarter 2015. Shares of Xunlei Ltd (NASDAQ:XNET0 declined on May 21, 2015 to as low as $8.89 per share.