纽约，2022 年8 月30 日/美通社/ — Wolf Haldenstein Adler Freeman & Herz LLP 宣布，已代表购买了纽约南区的美国地方法院提起了联邦证券集体诉讼。 New York, 2022 年8月30日/美通社/ — Wolf Haldenstein Adler Freeman & Herz LLP announced that it has represented the purchase of a federal securities class action in the United States District Court for the Southern District of New York. NEW YORK (NEW YORK), August 30, 2022. /PRNewswire/ — Компания Wolf Haldenstein Adler Freeman & Herz LLP объявила о подаче коллективного иска по ценным бумагам в Окружной суд США по Южному округу Нью-Йорка, который приобрел компанию. /PRNewswire/ — Wolf Haldenstein Adler Freeman & Herz LLP has announced that it has filed a securities class action lawsuit in the US District Court for the Southern District of New York, which acquired the company. or otherwise purchase American Depositary Receipts (“ADRs”) of Tuya Corporation (“Tuya” or the “Company”) (NYSE: TUYA) pursuant to the Company’s March 1, 2021 public offering (“IPO”).
To all investors who purchased ADRs of Tuya Inc. and suffer a loss, we strongly encourage you to contact the company immediately at [email protected], (800) 575-0735 or (212) 545-4774. You can learn more about this lawsuit or join the case on our website www.whafh.com.
If you suffer a loss in connection with a Graffiti ADR, you have until October 11, 2022 to ask the court to designate you as the lead plaintiff in the proposed category. Please contact Wolf Haldenstein to learn more about your rights as an investor in Graffiti’s ADRs.
Tuya offers a purpose-built “Internet of Things” cloud platform, offering businesses and developers a suite of products including Platform as a Service or PaaS and Software as a Service or SaaS. The company’s proprietary products and services enable “smart devices” such as Internet-connected household items and appliances to communicate and interact with end users and online information and services.
About 20% of Tuya’s customers sell products online through e-commerce marketplaces such as Amazon.com. To maintain the integrity of its platform, Amazon.com has long prohibited sellers from compensating reviewers for their reviews in most cases. Despite the ban, in April 2019 consumer website Which? published a report claiming that Amazon was “inundated with fake five-star reviews” and that sellers were posting tens of thousands of unverified product reviews.
In August 2020, a USC/UCLA research paper analyzed the market for fake reviews on Amazon.com. The newspaper found that the “overwhelming majority” (84%) of sellers who benefited from fake reviews were in China.
In September 2020, the Financial Times published an article titled “Evidence of publishing profitability after Amazon removed 20,000 reviews”. The article says that Amazon has removed 20,000 product reviews written by seven of the UK’s top 10 reviewers.
On March 1, 2021, the data security team Safety Detectives gained access to a data server in China containing 7 GB of data and over 13 million records that appear to be related to a widespread fake review scam.
Before the IPO, Tuya was reporting phenomenal growth. The company claims that in 2020 its technology is used in more than 116.5 million smart devices in more than 1,100 product categories sold in more than 220 countries and territories worldwide. Tuya claims to be “the IoT PaaS business with the largest smart device power supply in the global IoT PaaS market” and says its “business scale has been expanding rapidly recently” with revenue up 70% year on year to 179. $9 million in 2020. .
On February 26, 2021, Tuya’s application for registration to file Form F-1, as amended on March 12 and 16, 2021, was declared effective on March 17, 2021. On March 19, 2021, the company filed a prospectus. Initial Public Offering (“IPO”) on Form 424B4, which is included with and is part of the Application for Registration. The registration statement was used to sell over 45 million graffiti ADRs at $21 per ADR, generating over $946 million in revenue.
On May 11, 2021, an article on techcrunch.com stated that “several top Chinese sellers have disappeared from Amazon.” The report states that more than 13.1 million records of a massive fake review scam involving over 200,000 Amazon accounts were uncovered. Two months later, on July 9, 2021, verdict.co.uk reported that Amazon “shut down 340 online stores from one of its largest Chinese retailers in the first half of this year” to curb paid reviews and other violations. Amazon terms of service. Amazon has reportedly banned hundreds of Chinese brands from accessing thousands of seller accounts, many of them Tuya customers, citing repeated and serious violations.
Then, on August 18, 2021, Tuya issued a press release announcing the company’s financial results for the second quarter of 2021. The press release that sets the company’s guidance for the third quarter of 2021 said Doodle expects revenue of between $83 million and $86 million, which will surprise and disappoint analysts and investors alike.
On the same day, management said that the reason behind the low Q3 revenue guidance was “a number of challenges for our customers, including strict adherence to Amazon’s seller policy.”
By August 2022, Tuya ADRs fell below $2 per ADR, 90% below the price at which Tuya ADRs were sold to investors in the IPO.
Wolf Haldenstein has extensive experience in securities and derivatives litigation in state and federal courts and appeals throughout the country. The firm has attorneys in all areas of practice, with offices in New York, Chicago and San Diego. The firm’s reputation and experience in equity and other class actions has been repeatedly recognized by the courts, and it has been appointed to key positions in complex inter-district and consolidated securities litigation.
If you would like to discuss this action or have any questions about your rights in this case, please contact Wolf Haldenstein immediately at (800) 575-0735, email [email protected] or visit our website: www. whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLPPatrick Donovan, Esq. Gregory Stone, Director of Case Studies and Financial Analysis Email: [email protected], [email protected] or [email protected] Phone: (800) 575-0735 or (212) 545 – 4774
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Post time: Sep-01-2022