Securities Class Action Filed Against iDreamSky Technology Limited
Violations of federal securities laws as a result of a series of materially false statements. The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had overstated its ability to monetize its user base and effectively integrate its distribution channels; (2) as a result, the Company had to lower its earnings guidance; and (3) as a result of the foregoing, the Company’s statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis. The Complaint states that on March 13, 2015 after the market closed, the Company lowered its revenue guidance for the fourth quarter of 2014 to be between $52.7 million and $53.0 million, as compared to the previously announced revenue guidance of between $62.9 million and $66.1 million. According to the Company, the revised guidance reflected the delay of a popular game, launched on one of its distribution platforms, and lower-than-expected revenues from another game being launched simultaneously as other hit games on the same distribution platform. On this news, ADS of iDreamSky declined $3.60 per share, or by more than 33%, to close on March 16, 2015 at $7.22 per share on unusually heavy volume. Filed in S.D.N.Y.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 6/1/2015.
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