TWERSKY LAW GROUP Notifies DouYu International Holding Limited (DOYU Stock) Investors of Class Action
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 DouYu International Holding Limited (“DouYu” or “DouYu stock” or “the Company) (NASDAQ: DOYU) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired SentinelOne securities from April 30, 2021, through May 9, 2023 (the “Class Period”). Investors who acquired DouYu stock 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 August 8, 2023.
The fundamental objective of this class action lawsuit against DouYu stock is to recover for the benefit of investors who purchased DouYu 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
According to the lawsuit, Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, that: (1) The Chinese government, due to concerns about issues such as video game and computer addiction, as well as content challenging its authority, could become increasingly aggressive towards DouYu regardless of how effective or sincere its attempts to comply with Chinese law were; (2) this increasingly aggressive posture subjected DouYu to a heightened risk of an investigation and subsequent government enforcement action and ultimately resulted in enforcement action; and (3) as a result, Defendants statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
HISTORY OF DOUYU INTERNATIONAL HOLDING LIMITED
DouYu International Holding Limited (DOYU) is a prominent Chinese live-streaming platform that specializes in gaming and e-sports content. Founded in 2014 by Zhang Wenming, also known as “Mark Zhang,” DouYu quickly emerged as a major player in the live-streaming industry. The platform’s primary focus was to provide a space where gamers could showcase their skills and interact with a passionate community of viewers. With its user-friendly interface, robust features, and a wide selection of games, DouYu garnered significant attention and quickly gained popularity in the Chinese market.
In 2017, DouYu received a significant boost when Tencent Holdings, a leading Chinese internet conglomerate, invested in the company. Tencent’s investment not only injected capital into DouYu but also brought invaluable expertise and resources. This partnership allowed DouYu to expand its operations, improve its technology infrastructure, and strengthen its content offerings. With Tencent’s support, DouYu was able to attract even more streamers and viewers, solidifying its position as a dominant force in the live-streaming landscape.
Recognizing the potential of DouYu, the company decided to go public in July 2019. It filed for an initial public offering (IPO) on the Nasdaq stock exchange, aiming to raise funds for further expansion and enhancement of the user experience. The IPO was a resounding success, with DouYu raising approximately $775 million. This financial injection provided DouYu with the necessary capital to invest in cutting-edge technologies, diversify its content library, and explore new opportunities in the ever-evolving gaming industry.
In October 2020, DouYu made headlines again when it announced a merger agreement with Huya Inc., another major player in the Chinese live-streaming market. The merger was set to create a formidable entity that could dominate the industry by combining the strengths and resources of both platforms. Under the proposed merger, the two platforms would operate under the name DouYu-Huya and would be listed on the New York Stock Exchange (NYSE) under the ticker symbol “DOYU.” However, due to regulatory concerns and antitrust issues, the merger was ultimately abandoned in July 2021.
Although the merger fell through, the company formed a partnership with Tencent, the same company that had previously invested in DouYu. This partnership aimed to leverage Tencent’s vast resources and expertise to further enhance DouYu’s position in the market. The collaboration between DouYu and Tencent allowed for the integration of Tencent’s gaming ecosystem into DouYu’s platform, creating new opportunities for collaboration, content creation, and user engagement.
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 individuals who suffered financial losses in their investments in DouYu 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 August 8, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the
Twersky Law Group, a distinguished legal firm renowned for its expertise in handling securities fraud class actions and shareholder derivative suits, has 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 DouYu 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.