The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Sea Limited (“Sea” or the “Company”) (NYSE: SE) securities between April 23, 2022 and May 15, 2023, inclusive (the “Class Period”). Sea investors have until September 19, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On May 16, 2023, Sea released its first quarter 2023 financial results, reporting lower-than-expected earnings due to a sharp increase in loan loss reserves. The Company disclosed that its “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 [its] loan book.” Further, Sea also announces that its previous Chief Investment Officer had left that role and joined the Company’s Board of Directors.
On this news, Sea’s stock price fell $15.62, or 17.4%, to close at $72.45 per ADS on May 16, 2023, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Sea overstated its ability to manage the growth of its user base and loan book while enhancing its profitability; (2) Sea’s expansion to a broader user base and growing loan book rendered the Company significantly more vulnerable to higher credit losses; (3) as a result, the Company was likely to book a significant increase in loan loss reserves; (4) the foregoing was likely to have a significant negative impact on Sea’s earnings; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Sea securities during the Class Period, you may move the Court no later than September 19, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Sea securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Sea Limited (SE) Investors