San Diego, CA -- (SBWIRE) -- 03/24/2020 -- An investor, who purchased shares of DouYu International Holdings Limited (NASDAQ: DOYU), filed a lawsuit over alleged violations of Federal Securities Laws by DouYu International Holdings Limited in connection with DouYu's July 18, 2019 initial public offering ("IPO").

Investors who purchased shares of DouYu International Holdings Limited (NASDAQ: DOYU) have certain options and for certain investors are short and strict deadlines running. Deadline: May 4, 2020. NASDAQ: DOYU investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

China based DouYu International Holdings Limited operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming in China. On July 16, 2019, DouYu International Holdings Limited (NASDAQ: DOYU) announced its pricing of its initial public offering ("IPO") of 67.38 million ADS shares at $11.5 per share for a gross total proceeds of approximately $775 million.

However, since the IPO, shares of DouYu International Holdings Limited (NASDAQ: DOYU) declined to as low as $7.41 per share on October 15, 2019.

The plaintiff claims that DouYu's registration statement contained statements that were materially inaccurate, misleading, and/or incomplete because they failed to disclose that DouYu's risks related to its top streamers had materialized, including that: (a) a top streamer was actively misrepresenting herself on DouYu's platform, and (b) the costs associated with retaining top streamers was swelling, that DouYu did not ensure that all of its products were fully compliant with current regulatory requirements before those products became available on line, and that key interactive features of DouYu's "lucky draw" were noncompliant with current regulatory requirements, requiring DouYu International Holdings Limited to remove them from operations, which negatively impacted user engagement activity and caused disappointing financial results

Those who purchased shares of DouYu International Holdings Limited (NASDAQ: DOYU) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
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