- September 7, 2021
- Posted by: Mainframe Consulting
- Category: Business Wire
LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA) American Depository Shares (“ADSs” or “shares”) between September 30, 2020 and August 9, 2021, inclusive (the “Class Period”). Yalla investors have until October 12, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On May 19, 2021, Swan Street Research published a report alleging, among other things, that Yalla inflated its financial metrics, including its user data and its revenue, and characterized Yalla’s financial statements as “not credible.”
On this news, the Company’s share price fell $1.31, or 7%, to close at $17.01 per share on May 19, 2021.
Then, on May 20, 2021, The Bear Cave published a report and Gotham City Research tweeted that it was shorting Yalla.
On this news, the Company’s share price fell 6% to close at $15.96 per share on May 20, 2021.
Then, on August 9, 2021, after the market closed, Yalla announced its second quarter 2021 financial results, reporting revenue of $66.62 million, which fell below analysts’ expectations.
On this news, the Company’s share price fell approximately 19% to close at $10.99 per share on August 10, 2021.
The complaint filed in this class action alleges that throughout the Class Period, Defendants did: (1) deceive the investing public, including Plaintiff and the other members of the Class, as alleged herein; (2) artificially inflate and maintain the market price of Yalla ADSs; and (3) cause Plaintiff and the other members of the Class to purchase, or otherwise acquire, Yalla ADSs and options at artificially inflated prices and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Yalla ADSs during the Class Period, you may move the Court no later than October 12, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Yalla ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Published at Tue, 07 Sep 2021 16:15:00 +0000