Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Yalla To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - September 17, 2021) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Yalla Group Ltd ("Yalla" or the "Company") (NYSE: YALA) and reminds investors of the October 12, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Yalla stock or options between September 30, 2020 and August 9, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/YALA.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: Yalla and its senior executive made misleading statements to investors and failed to disclose that Yalla overstated its user metrics and revenue and, as a result, Yalla's public statements were materially false and misleading at all relevant times.
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."
On this news, the price of Yalla ADS fell $1.31 per share, or 7.15%, to close at $17.01 per ADS on May 19, 2021.
The next day, 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 Group ADSs.
On this news, the price of Yalla Group ADSs fell an additional 6%.
Finally, on August 9, 2021, Yalla Group issued a press release entitled, "Yalla Group Limited Announces Unaudited Second Quarter 2021 Financial Results," which disclosed that Yalla Group had quarterly revenue of $66.6 million, which did not meet analysts' expectations.
On this news, the price of Yalla Group ADSs fell nearly 19%, further damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Yalla's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96918