Yalla Group Limited

  • Dismissed

Investigation
08/13/2021

Initial Lawsuit
08/13/2021

Lawsuit Progression
11/08/2021

Dismissal
01/12/2022

Investigation

  • Continous Holding
    September 30, 2020 to August 9, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding Yalla’s public statements about its user metrics, revenue and second quarter 2021 financial results.

Main Event

Unexpected Financial Results?

08/09/2021

Yalla releases its Q2 2021 financial results: quarterly revenues come in short ($66.62 million) of analysts’ expectations. The company discloses an increase of 19.5% to 6.4 million of paying users from 5.4 million in Q2 2020. The number of paying users previously grew 233% from 1.62 million during Q1 2020 to Q2 2020.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$9.41 $9.4 $0.01 0.11%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 08/13/2021

Plaintiff brings this securities class action on behalf of Plaintiff and all other persons or entities, except for Defendants, who purchased or otherwise acquired Yalla American Depository Shares (ADSs) between September 30, 2020 and August 9, 2021, inclusive.

  • Filing Date
    08/13/2021
  • Class Period
    09/30/2020 to 08/09/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Scott+Scott Attorneys at Law LLP
  • Case Title
    Crass v. Yalla Group Limited et al
  • Docket Number
    1:21-cv-06854
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the Company overstated its user metrics and revenue and,
(ii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Defendants

  • Company
    Yalla Group Limited
  • Chief Executive Officer
    Tao Yang

Lawsuit progression

  • Docket Number
    1:21-cv-06854
  • Court
    New York Southern District Court

Lead Counsel

11/08/2021

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Pomerantz LLP
  • Lead Plaintiff
    Group of Individuals
  • Free File
    Order for lead

Dismissal

On 01/12/2022, plaintiff voluntarily dismissed the complaint.

Counsel for Lead Plaintiffs Peifa Xu and Yongjun Li (“Plaintiffs”) and counsel for Defendants Yalla Group Limited and Tao Yang (the “Defendants,” and together with Plaintiffs, the “Parties”) have conferred and stipulate to the relief requested in this motion.

[…]

WHEREAS, Plaintiffs have elected not to file the Amended Complaint or pursue this Action any further;.
WHEREAS, Defendants deny that they engaged in any wrongful acts or are liable on any of the claims asserted in this Action;

Free File
Stipulation/Order of Dismissal

[stockdio-historical-chart symbol=”YALA” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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