Investor Alert: Kaplan Fox Announces Investigation Of DouYu International

NEW YORK, April 3, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of DouYu International Holdings Limited ("DouYu" or the "Company") (NASDAQ: DOYU), a Chinese company that provides a live-streaming video-game platform.  A class action securities lawsuit has been filed on behalf of investors who purchased shares in or traceable to the Company's initial public offering ("IPO"). 

On or about July 18, 2019, DouYu completed its IPO by issuing 67,387,110 American Depositary Shares ("ADSs") priced at $11.50 per ADS.

The complaint alleges that the offering documents for the IPO failed to disclose that (1) a top streamer was actively misrepresenting herself on DouYu's platform, (2) the costs associated with retaining top streamers was swelling, (3) DouYu did not ensure that all of its products were fully compliant with current regulatory requirements before those products became available on line, and (4) 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.

According to the complaint, a series of disclosures in the months following the IPO revealed to investors that certain of DouYu's risks related to its top streamers had materialized; that the Company had failed to ensure that all of its products were fully compliant with current regulatory requirements before they became available online; and that key interactive features of DouYu's "lucky draw" were non-compliant, requiring DouYu to remove them from operations, which negatively impacted user engagement activity and caused disappointing financial results.

Since the IPO, DouYu's ADSs have traded as low as $6.11 per share, representing a decline of more than 45% from the offering price.

If you are a member of the proposed Class, you may move the court no later than May 26, 2020 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing [email protected] or by calling 646-315-9003.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, your rights, or your interests, please contact:

Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: [email protected]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
E-mail: [email protected]

View original content:http://www.prnewswire.com/news-releases/investor-alert-kaplan-fox-announces-investigation-of-douyu-international-301035348.html

SOURCE Kaplan Fox & Kilsheimer LLP