Yalla Group Limited (YALA) Overstated its User Metrics and Revenue
Yalla Group Limited held its U.S. initial public offering (“IPO”) on September 29, 2020. The Registration Statement in support of the IPO touted the Company’s financial performance and revenue growth. However, during the relevant period, defendants failed to disclose that Yalla overstated its user metrics and revenue. On May 19, 2021, Swan Street Research issued a report entitled “Is Yalla Group a Multi $B Fraud? The ‘Clubhouse of the Middle East’ UAE Tech Unicorn that Never Was.” The report alleged that Yalla had been inflating its financial metrics, including its user data and its revenue, and characterized Yalla’s financial statements as “not credible.” On this news, the price of Yalla ADSs fell $1.31, or 7.15%, to close at $17.01 per ADS on May 19, 2021.
On May 20, 2021, The Bear Cave issued a report entitled “Problems at Yalla Group” and Gotham City Research tweeted it was shorting Yalla ADSs. On this news, Yalla’s shares fell an additional 6%, to close at $15.96 on May 20, 2021.
On August 9, 2021, Yalla issued a press release disclosing its unaudited second quarter 2021 financial results, announcing quarterly revenue of $66.62 million, which missed analysts’ expectations. On this news, the price of Yalla’s ADSs fell nearly 18.9%, to close at 10.99 on August 10, 2021.
If you purchased shares of Yalla Group Limited (YALA) between December 28, 2016 and August 3, 2021, you have until October 12, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
