NEW YORK, April 13, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the American Depository Shares ("ADSs") of iDreamSky Technology Limited ("iDreamSky" or the "Company") (Nasdaq:DSKY) between August 8, 2014 and March 13, 2015, inclusive, including those investors who acquired iDreamSky ADSs pursuant or traceable to its initial public offering ("IPO") commenced on or about August 7, 2014 (collectively, the "Class Period") alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
If you purchased iDreamSky during the Class Period, you may, no later than June 1, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the iDreamSky Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
iDreamSky licenses and operates single player mobile games and mobile online games in the People's Republic of China.
The Complaint alleges that iDreamSky made materially false and misleading statements and failed to disclose material adverse facts about its business, operations, prospects, and performance. Specifically, the complaint alleges that iDreamSky failed to disclose that the company had overstated its ability to monetize its user base and effectively integrate its distribution channels. On March 13, 2015, after the market closed, iDreamSky lowered its revenue guidance for fourth quarter 2014 approximately by $9.9 million USD to approximately $53 million USD. According to the company, the revision of fourth quarter guidance is the result of the delay of a popular game, launched on one of the company's distribution platforms, and lower than anticipated revenues from another game being launched simultaneously as other hit games on the same distribution platform.
Following this news, American Depositary Shares of iDreamSky fell $3.60, or over 33%, to close at $7.22 per share.
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