Bernstein Liebhard LLP Files Securities Class Action Lawsuit Against Sea Limited for Alleged Violations of Securities Exchange Act - Learn More
Deals
July 25, 2023
If you are an investor who purchased or acquired shares of Sea Limited ("Sea" or the "Company") between April 23, 2022, and May 15, 2023, and experienced losses in your investment, Bernstein Liebhard LLP has important news for you. The renowned law firm has filed a securities class action lawsuit on behalf of investors who may have been affected during this period. The lawsuit alleges violations of the Securities Exchange Act of 1934 by Sea Limited and certain of its officers.
The securities class action lawsuit against Sea Limited was filed in the United States District Court for the District of Arizona. The lawsuit covers the period between April 23, 2022, and May 15, 2023, referred to as the "Class Period." The Complaint alleges that the Company and some of its officers made materially false and misleading statements throughout this period.
According to the Complaint, Sea Limited, which operates digital entertainment, e-commerce, and digital financial services across Asia, Latin America, and internationally, made several misleading statements during the Class Period. The Company's digital financial services platform, which offers payment processing services, credit offerings, and digital bank services, supposedly worked in synergy with its entertainment and e-commerce platforms to drive growth.
However, the Plaintiff claims that Sea overstated its ability to manage the growth of its user base and loan book while enhancing profitability. The expansion to a broader user base and the growing loan book allegedly made the Company more susceptible to higher credit losses, which Sea reportedly failed to disclose. As a result, the Plaintiff believes that the Company was likely to book a significant increase in loan loss reserves, which could negatively impact Sea's earnings.
On May 16, 2023, Sea Limited announced its financial results for the first quarter of 2023. Among the highlights, the Company reported earnings that fell significantly short of expectations, attributing this to a sharp increase in loan loss reserves. Sea stated that its provision for credit losses had risen by 120.5% to US$177.4 million in the first quarter of 2023, compared to US$80.5 million in the first quarter of 2022, largely due to the expansion to a broader user base and the growth of its loan book.
As a consequence of this news, Sea's American Depositary Share ("ADS") price experienced a sharp decline of nearly 18%.
For those wishing to participate as lead plaintiff in the securities class action lawsuit against Sea Limited, the deadline to move the Court is September 17, 2023. A lead plaintiff represents other class members in directing the litigation, and it's important to act within the specified timeframe. However, even if you choose not to serve as lead plaintiff, you may still have the opportunity to share in any potential recovery as an absent class member.
Bernstein Liebhard LLP, the law firm responsible for filing this securities class action lawsuit, has a long history of fighting for investors' rights. Since 1993, the firm has successfully recovered over $3.5 billion for its clients. It has represented individual investors as well as some of the largest public and private pension funds in the country, helping them monitor their assets and pursue litigation on their behalf. Their experience and success have earned them recognition on The National Law Journal's "Plaintiffs' Hot List" thirteen times and inclusion in The Legal 500 for sixteen consecutive years.
If you believe you may be affected by the securities class action lawsuit against Sea Limited and would like to discuss your legal rights and options, you can reach out to Peter Allocco at Bernstein Liebhard LLP. You can contact him at (212) 951-2030 or email pallocco@bernlieb.com. Additional information about the lawsuit can also be found on the Sea Limited Shareholder Class Action Lawsuit page on the firm's website: https://www.bernlieb.com.
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