Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Sea Limited (“Sea” or “the Company) (NASDAQ: SE) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that held, purchased, or otherwise acquired Sea securities from April 23, 2022 through May 15, 2023 (the “Class Period”). Investors who acquired Sea securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is September 19, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Sea securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST SEA LIMITED
The allegations against the Company, Sea Limited, are as follows:
Defendants have consistently asserted that these purported synergies allow the Company to grow its user base and loan book in an efficient, cost-effective manner, while managing risks impacting the Company’s profitability. The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. More specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sea overstated its ability to manage the growth of its user base and loan book while enhancing its profitability; (ii) Sea’s expansion to a broader user base and growing loan book rendered the Company significantly more vulnerable to higher credit losses; (iii) as a result, the Company was likely to book a significant increase in loan loss reserves; (iv) the foregoing was likely to have a significant negative impact on Sea’s earnings; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. On May 16, 2023, Sea issued a press release announcing its financial results for the first quarter of 2023. Among other items, Sea reported first-quarter earnings that fell significantly short of expectations due to a sharp increase in loan loss reserves. The Company advised that “[o]ur provision for credit losses increased by 120.5% to US$177.4 million in the first quarter of 2023 from US$80.5 million in the first quarter of 2022, primarily driven by expansion to a broader user base and the growth of our loan book” (emphasis added). Sea also disclosed that the Company’s previous Chief Investment Officer, David Ma, had left that role and joined the Company’s Board of Directors. On this news, Sea’s American Depositary Share (“ADS”) price fell $15.62 per ADS, or 17.74%, to close at $72.45 per ADS on May 16, 2023.
ABOUT SEA LIMITED
What does Sea Limited do?
- Sea Limited is a consumer Internet company. The Company operates through three segments: Digital entertainment, E-commerce, and Digital financial services. The Digital entertainment segment includes Garena, which offers mobile and personal computer (PC) online games and develops mobile games for the global market.
- The Digital Entertainment segment stands out as a major revenue driver for Sea Limited, and at the heart of this division lies its flagship platform, Garena. Garena is a globally recognized name in the gaming industry, providing an extensive array of thrilling online games that cater to both mobile and personal computer (PC) users. With a firm grasp on the pulse of the gaming community, Garena delivers captivating gaming experiences that resonate with players from around the world.
What companies are owned by Sea Limited?
- Sea. A global consumer internet company.
- Garena. Online games development and publishing.
- Shopee. Shop online anytime, anywhere.
- SeaMoney. Digitalising financial services.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those who suffered financial losses in their investments in Sea during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire Class. The deadline for submitting such a request is September 19, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential Class members in the class action lawsuit against Sea are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
ABOUT US
For more information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com. Atara is Principal at Twersky Law Group and of counsel at AF&T Law Firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries, listen to Atara ’s Pension and Investments Podcast with notable guests in the pension fund Industry that discusses various matters relating to investment portfolios. For more information on Atara and her legal work pertaining to shareholder protection click here.
