Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of DouYu International Holdings Limited (DOYU) on Behalf of Investors

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of DouYu International Holdings Limited (“DouYu” or the “Company”) (NASDAQ: DOYU) investors concerning the Company’s possible violations of the federal securities laws.

If you suffered a loss on your DouYu investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/DouYu-International-Holdings-Limited-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On March 29, 2022, after market hours, The Wall Street Journal published an article detailing new regulations being drafted by Chinese authorities regarding the country’s live-streaming industry, including plans to set a daily limit on how much money live-streamers can receive from fans, as well as tighter censorship over content, in an effort to “[exert] greater influence over the content consumed by its young people.” On this news, DouYu’s stock price fell $0.15, or 6.4%, to close at $2.21 per ADS on March 30, 2022, thereby injuring investors.

Then, on February 27, 2023, the Cyberspace Administration of China (“CAC”) released a statement in which it included DouYu in a list of platforms having “harmful information such a spreading pornographic drainage, vulgarity, [and] violent abuse.” The CAC claimed that “[in] order to solve the problem, [it would] continue to increase the crackdown on violations of laws and regulations, continue to do a good job in the work of ‘sweeping pornographic and illegal activities’ online, and effectively safeguard the people's online cultural rights and interests.” On this news, DouYu’s stock price fell $0.07, or 5.3%, to close at $1.25 per ADS on February 28, 2023.

Then, on May 8, 2023, after the markets closed, the CAC announced that “the State Internet Information Office instructed the Hubei Provincial Internet Information Office to send a working group to the DouYu platform to carry out a one-month centralized rectification supervision.” The following morning, May 9, 2023, before the market opened, DouYu issued a press release stating that the “CAC has sent an inspection team to the Company due to certain alleged violations of content rules and regulations on its platform. The CAC team is expected to conduct a one-month on-site inspection of the Company’s content platform, which DouYu will fully cooperate with. DouYu is also concurrently conducting a comprehensive internal review of its content monitoring system. As a platform committed to regulatory compliance and the safety of its user community, DouYu plans to implement all necessary remedial measures based on the CAC inspection and its own internal review. DouYu is expected to maintain its normal operations during this period of time.” On this news, DouYu’s stock price fell $0.098, or 9.3%, on May 9, 2023, thereby injuring investors further.

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Whistleblower Notice: Persons with non-public information regarding DouYu should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email shareholders@glancylaw.com.

About GPM

Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

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Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
www.glancylaw.com
shareholders@glancylaw.com