SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Tuya Inc. - TUYA
NEW YORK , Oct. 10, 2022 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Tuya Inc. ("Tuya" or the "Company") (NYSE: TUYA). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Tuya and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around March 18, 2021, Tuya conducted its initial public offering ("IPO"), selling more than 45 million American Depositary Shares ("ADSs") priced at $21.00 per ADS. On May 11, 2021, an article on techcrunch.com revealed that over the past few days, "several top Chinese sellers disappeared from Amazon." The article reported that over 13.1 million records documenting a massive fake review scam had been uncovered, implicating more than 200,000 Amazon accounts. The article added that "[i]n total, the suspended accounts contribute over a billion dollars in gross merchandise value (GMV) to Amazon." The article quoted Amazon as stating: "'We take swift action against those that violate [our policies], including suspending or removing selling privileges.'" Then, on August 18, 2021, Tuya issued a press release announcing the Company's financial results for the second quarter of 2021. The release also provided the outlook for the third quarter of 2021, stating that the Company expects revenue to be in a range of just $83 million to $86 million, which surprised and disappointed analysts and investors. During an earnings call held that same day with analysts and investors, Chief Financial Officer Yao (Jessie) Liu revealed the reason for the low third quarter revenue forecast, explaining that "our customers face a series of challenges, including Amazon's strict execution of seller policy," in which Amazon had banned cross-border e-commerce stores. After the call, analysts estimated that the Amazon bans would negatively affect Tuya's 2021 second half revenues by 10%, and that 20% of all Tuya IoT-enabled devices were sold through online channels such as Amazon. By August 2022, Tuya ADSs had fallen below $2.00 per ADS, representing a decline of 90% from the IPO price.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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