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BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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"). Tuya investors have until October 11, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Tuya investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
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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 Tuya ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
Investors suffering losses on their Tuya investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
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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 Tuya ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
Filed Under: Business
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