Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Sea Limited (NYSE: SE) securities between April 23, 2022 and May 15, 2023. Sea Limited, together with its subsidiaries, provides digital entertainment, e-commerce, and digital financial services in Asia, Latin America, and internationally.
What is this Case About: Sea Limited (SE) Misled Investors Regarding its Financial Prospects
According to the complaint, during the class period, defendants failed to disclose that: (i) Sea Limited overstated its ability to manage the growth of its user base and loan book while enhancing its profitability; (ii) Sea Limited's expansion to a broader user base and growing loan book rendered the Company significantly more vulnerable to higher credit losses; and (iii) as a result, the Company was likely to book a significant increase in loan revenues, which would have a significant impact on Sea Limited's earnings.
On May 16, 2023, Sea Limited announced its financial results for the first quarter 2023, including that first-quarter earnings fell significantly short of expectations due to a sharp increase in loan loss reserves. The Company 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.” The Company also disclosed that its previous Chief Investment Officer had left his role to join the Company's Board of Directors. On this news, the Company's ADS price fell $15.62 per ADS, or over 17%, to close at $72.45 per ADS on May 16, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Sea Limited. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 17, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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