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The law firm of Robbins Geller Rudman & Dowd LLP announces that it has filed a securities class action lawsuit seeking to represent purchasers of Tuya Inc. American Depositary Shares (“ADSs”) in or traceable to Tuya’s March 2021 initial public offering (the “IPO”). Captioned Lian v. Tuya Inc., No. 22-cv-06792 (S.D.N.Y.) – the Tuya class action lawsuit charges Tuya, certain of its top executives and directors, as well as the IPO’s underwriters with violations of the Securities Act of 1933.
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Tuya class action lawsuit must be filed with the court no later than October 11, 2022.
CASE ALLEGATIONS: Based in China, Tuya’s proprietary products and services enable so-called “smart devices,” e.g., household items and appliances connected to the internet, to communicate and interact with end users and online information and services. Approximately 20% of Tuya’s customers sell products online through e-commerce marketplaces such as Amazon.com. And to maintain the integrity of its platform, Amazon.com has long prohibited the practice of sellers compensating review writers for their reviews in most instances.
Leading up to the IPO, Tuya claimed to be experiencing phenomenal growth. But as the Tuya class action lawsuit alleges, the IPO’s registration statement documents were materially false and misleading because they failed to disclose that: (i) 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; (ii) 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, among other things, the exposure of 13 million records of organized fake review scams linked to over 200,000 Amazon account profiles; (iii) as a result, 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 (iv) as such, the IPO’s registration statement’s representations regarding Tuya’s historical financial and operational metrics and purported market opportunities and expected growth did not accurately reflect the actual business, operations, financial results, and trajectory of Tuya at the time of the IPO.
By August 2022, the price of Tuya ADSs had dropped below $2 per ADS – 90% below the price at which Tuya ADSs were sold to the investing public in the IPO.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who Tuya ADSs in or traceable to the IPO to seek appointment as lead plaintiff in the Tuya class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Tuya class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Tuya class action lawsuit. An investor’s ability to share in any potential future recovery of the Tuya class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
jsanchez@rgrdlaw.com
