DOUYU INTERNATIONAL HOLDING LIMITED (NASDAQ: DOYU) Abraham, Fruchter & Twersky, LLP Announces Investigation of Securities Fraud Claims

NEW YORK, April 29, 2020 (GLOBE NEWSWIRE) -- DouYu International Holding Limited (NASDAQ: DOYU) completed its initial public offering of American Depository Shares on July 16, 2019.  In a series of disclosures it was revealed that at the time of the IPO, unbeknownst to investors, DOUYU was experiencing high top streamer retention costs and that it knew that the present, ongoing, and likely continued departure of top streamers would negatively impact its performance.  It also became apparent that DOUYU had not ensured that all its streamers were fully compliant with regulatory requirements, which forced DOUYU to remove popular streamers that were non-compliant from operations.  As a result of these disclosures, on December 18, 2019, Yahoo Finance listed DOUYU as one of “the 5 worst performing IPOs of 2019.”  DOUYU has traded as low as $6.27 per share since the IPO, representing a 45% decline from the offering price of $11.50.  

A securities class action lawsuit has been filed against DOUYU in the U.S. District Court for the Central District of California for DOUYU’s alleged violations of federal securities laws.  The deadline to submit an application to be appointed as lead plaintiff is May 26, 2020.

If you purchased shares of DOUYU stock in the July 2019 IPO and would like to inquire about pursuing claims to recover losses or seeking appointment as lead plaintiff in the securities class action currently pending against DOUYU, you are encouraged to contact Abraham, Fruchter & Twersky, LLP by e-mailing Sean M. Handron-O’Brien ([e-mail]). You may also call and leave a message at [phone], Ext. 1626 (responses to telephone messages may be delayed by the existing lockdown in New York caused by the Coronavirus).

Abraham, Fruchter & Twersky, LLP (www.aftlaw.com), is a law firm based in New York and maintaining an office in California.  Abraham, Fruchter & Twersky, LLP has extensive experience in litigating securities class action cases.  The firm has been ranked among the leading class action law firms in terms of recoveries achieved for shareholders, most recently obtaining approval of a $48,750,000 settlement in In re Terraform Global Securities Litigation, No. 1:16-cv-07967-PKC (S.D.N.Y.), representing as much as 75% of likely recoverable damages.

If you have any questions about this Notice, the action, your rights or your interests, please contact:

Sean M. Handron-O’Brien
Abraham, Fruchter & Twersky, LLP
One Penn Plaza, Suite 2805
New York, New York 10119
Tel: [phone], Ext. 1626
Fax: [phone]
Email: [e-mail]

Source: Abraham, Fruchter & Twersky, LLP

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