Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, reminds investors that a securities class action lawsuit has been filed against Tuya Inc. (NYSE: TUYA) (“Tuya”), certain of its officers and directors, and the underwriters of Tuya’s March 2021 initial public offering (“IPO”), alleging violations of the Securities Act of 1933.
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Tuya is a China-based technology company that markets and sells its Internet of Things cloud platform to customers who, in turn, sell their connected devices through e-commerce marketplaces such as Amazon.com.
On March 19, 2021, Tuya sold approximately 45,000,000 American Depositary Shares (“ADSs”) at a price of $21 per share, generating proceeds in excess of $946 million.
According to the complaint filed in the Southern District of New York, the registration statement and prospectus used to effectuate the Company’s IPO 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, as well as 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; and (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. When the truth about these issues reached the market, the price of Tuya’s ADSs precipitously declined.
By August 2022, the price of Tuya’s ADSs had dropped below $2 per ADS, representing a 90% decline from the IPO offering price of $21.
What You Can Do – CLICK HERE
If you purchased Tuya ADSs pursuant and/or traceable to the offering documents used to effectuate the IPO, or otherwise acquired Tuya shares, and have suffered a loss, realized or unrealized, and you wish to discuss this action, please contact attorney Jonathan Zimmerman at (888) 398-9312 or at jzimmerman@scott-scott.com. The lead plaintiff deadline is October 11, 2022.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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Contacts
Scott+Scott Attorneys at Law LLP
Joe Pettigrew
(888) 818-6982
jpettigrew@scott-scott.com
