DouYu International Holdings Limited ADS (NASDAQ: DOYU)
According to the Complaint, DouYu International Holdings Limited purports to one of China’s top two live-streaming video-game platforms. Operating on personal computer (“PC”) and mobile applications, DouYu enables users to enjoy immersive and interactive games and entertainment live streaming.
This is a federal securities class action on behalf of all persons and entities, other than Defendants, who purchased DouYu American Depositary Shares pursuant and/or traceable to the Company’s Registration Statement issued in connection with the Company’s July 16, 2019 initial public offering.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) DouYu’s risks related to its top streamers had materialized, including that: (a) a top streamer was actively misrepresenting herself on DouYu’s platform; and (b) the costs associated with retaining top streamers was swelling; (2) DouYu did not ensure that all of its products were fully compliant with current regulatory requirements before those products became available on line; and (3) key interactive features of DouYu’s “lucky draw” were noncompliant with current regulatory requirements, requiring DouYu to remove them from operations, which negatively impacted user engagement activity and caused disappointing financial results.