BLOCK & Leviton LLP filed a lawsuit in the District Court of the Central District of California against JOYY and some of its officers and directors regarding violations of federal securities laws, based on a report published by analyst Muddy Waters in November 2020 accusing JOYY of multibillion-dollar fraud. This is stated in the press release of BLOCK & Leviton on January 14.
A lawsuit alleging violations of federal securities laws has been filed against JOYY and certain of its officers and directors. The lawsuit asserts that JOYY dramatically overstated its revenues from live streaming sources. It further alleges that at any given time, the majority of JOYY’s users were bots, which JOYY used to effect a roundtripping scheme that manufactured the false appearance of revenues. Moreover, the lawsuit asserts that JOYY’s acquisition of Bigo was largely contrived to benefit corporate insiders.
The lawsuit was filed in the U.S. District Court for the Central District of California.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
