Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Tuya Inc. (TUYA)
LOS ANGELES, Aug. 26, 2022 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming October 11, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Tuya Inc. (“Tuya” or the “Company”) (NYSE: TUYA) American Depositary Shares (“ADSs”) pursuant and/or traceable to the Company’s March 2021 initial public offering (the “IPO”).
If you suffered a loss on your Tuya investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/tuya-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
On March 18, 2021, Tuya conducted its IPO, selling over 45 million ADSs at $21 per ADS.
On May 11, 2021, an article on techcrunch.com reported that “several top Chinese sellers” had “disappeared from Amazon,” and that over 13.1 million records documenting a fake review scam had been uncovered, with more than 200,000 Amazon accounts.
Then, on July 9, 2021, verdict.co.uk revealed that, in an attempt to crack down against paid reviews and other violations, Amazon had banned hundreds of Chinese brands across thousands of sellers’ accounts, many of which were clients of Tuya.
Then, on August 18, 2021, Tuya reported disappointing financial results for second quarter 2021. During the related conference call, the Company attributed the results to a “series of challenges” affecting its customers, “including Amazon’s strict execution of seller policy, rising raw material prices and shortage of semiconductor components.”
On this news, the Company’s share price fell $1.74, or 14%, to close at $10.41 per ADS on August 19, 2021. By August 2022, Tuya ADSs had dropped below $2 per ADS, 90% below the IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that a material portion of Tuya’s China-based customers were engaged in the widespread and systematic manipulation of reviews and product offerings in violation of Amazon.com’s terms of use; (2) that, prior to the IPO, a consumer investigation and data breach had exposed an illicit fake review scheme being perpetrated by many of Tuya’s clients, among others, which included, inter alia, the exposure of 13 million records of organized fake review scams linked to over 200,000 Amazon account profiles; (3) that, as a result of above, there was a substantial risk that a material portion of Tuya’s significant customers would be barred from using Amazon.com’s platform, negatively impacting Tuya’s business, revenue, earnings, and prospects; 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 or otherwise acquired Tuya ADSs pursuant and/or traceable to the IPO, you may move the Court no later than October 11, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com
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