NYSE:YALA Shareholder Notice: Lawsuit Alleges Misleading Statements by Yalla Group Limited
A lawsuit was filed on behalf of investors in Yalla Group Limited (NYSE:YALA) shares over alleged securities laws violations.
San Diego, CA -- (SBWire) -- 08/30/2021 --An investor, who purchased shares of Yalla Group Limited (NYSE: YALA), filed a lawsuit over alleged violations of Federal Securities Laws by Yalla Group Limited in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Yalla Group Limited (NYSE: YALA) have certain options and for certain investors are short and strict deadlines running. Deadline: October 12, 2021. NYSE: YALA investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Dubai based Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. On or around September 30, 2020, Yalla Group Limited conducted its initial public offering ("IPO"), issuing 18.6 million American depositary shares ("ADSs") priced at $7.50 per ADS.
On May 19, 2021, Swan Street Research ("Swan Street") published a report (the "Swan Street Report") addressing Yalla, entitled "Is Yalla Group a Multi $B Fraud? The 'Clubhouse of the Middle East' UAE Tech Unicorn that Never Was." The Swan Street Report alleged, among other things, that the Company has been inflating its financial metrics, including its user data and its revenue, and characterized Yalla's financial statements as "not credible."
The next day, on May 20, 2021, analyst The Bear Cave issued a report entitled, "Problems at Yalla Group," and Gotham City Research also tweeted that it was shorting Yalla shares. On this news, the Company's share price declined by $1.05 per share, or approximately 6.17%, from $17.01 per share to close at $15.96 per share on May 20, 2021.
Then, on August 9, 2021, after the markets closed, Yalla issued a press release entitled, "Yalla Group Limited Announces Unaudited Second Quarter 2021 Financial Results," announcing its financial results for the second quarter of 2021 ("2Q21 Results"). The 2Q21 Results disclosed that Yalla had quarterly revenue of $66.62 million, which did not meet analysts' expectations.
Shares of Yalla Group Limited (NYSE: YALA) declined from $41.35 per share on February 11, 2021 to as low as $9.03 per share on August 20, 2021.
The plaintiff claims that between September 30, 2020 and August 9, 2021, Yalla Group Limited and its Chief Executive Officer made materially false and misleading statements regarding the Company's business and financial metrics. Specifically, Defendants made false and/or misleading statements regarding, and/or failed to disclose that the Company overstated its user metrics and revenue and, as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Yalla Group Limited (NYSE: YALA) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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