NEW YORK, Sept. 03, 2021 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA) securities from September 30, 2020 through August 9, 2021, inclusive (the “Class Period”). Investors have until October 12, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Yalla is a voice-centric social networking and entertainment platform that operates mainly in the Middle East and Northern Africa (“MENA”) region.
On May 19, 2021, Swan Street Research (“Swan Street”) published a report (the “Swan Street Report”) addressing Yalla, entitled “Is Yalla Group a Multi $B Fraud? The ‘Clubhouse of the Middle East’ UAE Tech Unicorn that Never Was.” The Swan Street Report alleged, among other things, that the Company has been inflating its financial metrics, including its user data and its revenue, and characterized Yalla’s financial statements as “not credible.” On this news, the Company’s share price declined by $1.31 per share, or approximately 7.15%, from $18.32 per share to close at $17.01 per share on May 19, 2021.
The next day, on May 20, 2021, analyst The Bear Cave issued a report entitled, “Problems at Yalla Group,” and Gotham City Research also tweeted that it was shorting Yalla shares. On this news, the Company’s share price declined by $1.05 per share, or approximately 6.17%, from $17.01 per share to close at $15.96 per share on May 20, 2021.
Then, on August 9, 2021, after the market closed, Yalla issued a press release entitled, “Yalla Group Limited Announces Unaudited Second Quarter 2021 Financial Results,” announcing its financial results for the second quarter of 2021 (“2Q21 Results”). The 2Q21 Results disclosed that Yalla had quarterly revenue of $66.62 million, which did not meet analysts’ expectations. On this news, the Company’s share price declined by $2.56 per share, or approximately 18.89%, from $13.55 per share to close at $10.99 per share on August 10, 2021.
The lawsuit alleges that, throughout the Class Period, Yalla and its Chief Executive Officer made materially false and misleading statements regarding the Company’s business and financial metrics. Specifically, Defendants made false and/or misleading statements regarding, and/or failed to disclose that the Company overstated its user metrics and revenue and, as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired Yalla securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
[email protected]
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