DOYU.US
id: 759
DouYu International (DOYU) $2.25M Investor Settlement
D. New Jersey
Court2:23-cv-3161
Case number30 Apr 2021
Class period Start27 Nov 2023
Class period EndDouYu (DOYU) agreed to pay $2.25M to investors to settle claims that it misled them about the risk of aggressive Chinese government action due to concerns over gaming addiction and content.
Case Details:
On May 9, 2023, DouYu International Holdings Limited (DOYU) filed a current report on Form 6-K with the SEC, which contained a press release stating that the “the CyberSpace Administration of China (CAC) has sent an inspection team to the Company due to certain alleged violations of content rules and regulations on its platform.
- The CAC team is expected to conduct a one-month on-site inspection of the Company’s content platform, which DouYu will fully cooperate with.
- DouYu is also concurrently conducting a comprehensive internal review of its content monitoring system.
- As a platform committed to regulatory compliance and the safety of its user community, DouYu plans to implement all necessary remedial measures based on the CAC inspection and its own internal review. DouYu is expected to maintain its normal operations during this period of time.”
On this news, $DOYU fell 9.33%, damaging shareholders.
Taking all facts into account, Investors have reasons to suspect DouYu and its Accountables of misleading statements and failing to disclose important facts about its business operations.
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements,
Failure to Disclose,
Negligence,
Omissions
Suspected Party
Directors,
Management,
Service Provider
Security Type
Stocks
Trade Direction
Long
Filing date
09 June 2023
Lead Plaintiff Deadline
09 August 2023
Plaintiffs
David Rigo Fernandez
Attorneys
The Rosen Law Firm, P.A. (Newark, NJ)
Defendants
Shaojie Chen, Mingming Su
Judge
Evelyn Padin
Administrator
Strategic Claims Services
Settlement agreement date
2024-07-30
Trades matching type
FIFO
+$2,250,000
Cash Settlement Amount