Philadelphia, Pennsylvania--(Newsfile Corp. - September 14, 2023) - Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Sea Limited ("Sea") (NYSE: SE) on behalf of those who purchased Sea securities between April 23, 2022 and May 15, 2023, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Sea securities during the Class Period may, no later than September 19, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015, or visit: https://investigations.bergermontague.com/sea-limited/
Sea, together with its subsidiaries, provides digital entertainment, ecommerce, and digital financial services in Asia, Latin America, and internationally. Sea's digital financial services platform provides payment processing services, credit offerings, and digital bank services under various brands, which, according to Sea's representations, work in tandem with Sea's digital entertainment and e-commerce platforms to drive synergies among all three business segments.
According to the lawsuit, Sea and other defendants have consistently asserted that these purported synergies allow Sea to grow its user base and loan book in an efficient, cost-effective manner, while managing risks impacting the company's profitability.
The truth was revealed on May 16, 2023, when Sea issued a press release announcing its financial results for the first quarter of 2023. Among other items, Sea reported first-quarter earnings that fell significantly short of expectations due to a sharp increase in loan loss reserves. Sea advised that " [o]ur provision for credit losses increased by 120.5% to US$177.4 million in the first quarter of 2023 from US$80.5 million in the first quarter of 2022, primarily driven by expansion to a broader user base and the growth of our loan book." Sea also disclosed that its previous Chief Investment Officer, David Ma, had left that role and joined the Company's Board of Directors.
Following this news, the price of Sea's American Depositary Shares ("ADS") fell $15.62 per ADS, or 17.74%, to close at $72.45 per ADS on May 16, 2023.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Whistleblowers: Anyone with non-public information regarding Sea is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., San Diego, San Francisco, Chicago, and Wilmington, DE has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
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