Sea Limited Class Action Alert: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the District of Arizona against Sea Limited

LEAD PLAINTIFF DEADLINE IS SEPTEMBER 19, 2023

NEW YORK, July 28, 2023 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein") announces that a federal securities class action lawsuit has been filed against Sea Limited ("Sea" or the "Company") (NYSE:SE) in the United States District Court for the District of Arizona on behalf of a class consisting of all persons and entities, other than Defendants, that purchased or otherwise acquired Sea American Depositary Shares ("ADS") between April 23, 2022 and May 15, 2023, both dates inclusive (the "Class Period").

All investors who purchased shares and incurred losses are advised to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.

If you have incurred losses, you may, no later than September 19, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

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Sea provides digital entertainment, e-commerce, and digital financial services in Asia, Latin America, and internationally. In particular, it operates the subsidiaries Garena, a digital entertainment platform for users to access mobile and computer online games, as well as eSports operations; Shopee, an e-commerce platform and mobile-centric marketplace that provides integrated payment and logistics infrastructure and seller services; and SeaMoney, a digital financial services platform.

Sea filed its annual 20-F for the Fiscal Year 2021 on April 23, 2022, reporting that a large and growing user base benefitted Sea's monetization efforts and that synergies among the Company's three businesses allowed the Company to increase its user base, and monetization of that user base, in a cost-effective manner. The 2021 20-F also contained generic, boilerplate representations purporting to describe risks related to Sea's growing loan and credit practices (e.g. "we may require additional funds...").

On May 17, 2022, Sea issued a press release announcing the Company's first quarter 2022 results. The press release quoted Defendant Li, who stated, in relevant part, that "we are well on track to achieve our previously shared projections of profitability in our Asia markets, while continuing to scale our businesses and capture market share globally"; that "Shopee and SeaMoney continued to enjoy operating leverage and efficiency gain as they scale and strengthen their market leadership positions"; and that "[w]ith the significant scale, strong leadership and clear synergies achieved by both businesses in Southeast Asia and Taiwan, our consumer internet ecosystem in the region is naturally approaching a stage of long-term profitable growth."

On August 16, 2022, Sea issued a press release announcing the Company's second quarter 2022 results, which indicated again that the Company was scaling its business and user base in an efficient, cost-effective manner that would ultimately enhance the Company's profitability. Then, on November 15, 2022, Sea issued a press release announcing the Company's third quarter 2022 results. The press release quoted Defendant Li, who represented that the Company had successfully shifted away from focusing on growth in favor of achieving profitability given changes in the macro environment and downplayed the negative impact that Sea's growing loan book was having on its profitability.

On March 7, 2023, Sea issued a press release announcing the Company's fourth quarter and full year 2022 results. The press release again quoted Defendant Li, who continued to assure investors that the Company had successfully shifted away from focusing on growth in favor of achieving profitability (e.g. "we are starting 2023 on a much stronger footing") as well as downplay the negative impact that Sea's growing loan book was having profitability.

On May 16, 2023, during pre-market hours, Sea issued a press release announcing its financial results for the first quarter of 2023. Among other items, Sea reported that "[o]ur provision for credit losses increased by 120.5% to US$177.4 million in the first quarter of 2023 from US$80.5 million in the first quarter of 2022, primarily driven by expansion to a broader user base and the growth of our loan book." This drastic increase in loan loss reserves caused the Company to drastically miss expected earnings for the quarter – from an expected $0.73 per share to $0.15 per share. On this news, Sea's ADS price fell $15.62 per ADS, or 17.74%, to close at $72.45 per ADS on May 16, 2023.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].

Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774

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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP