NEW YORK, May 4, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against iDreamSky Technology Limited (“iDreamSky” or the “Company”) (Nasdaq:DSKY) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-02944, is on behalf of a class consisting of all persons or entities who purchased iDreamSky American Depositary Shares ("ADSs"): (1) pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's initial public offering on or about August 7, 2014 (the "IPO" or the "Offering"); and/or (2) on the open market between August 8, 2014 and March 13, 2015, inclusive (the "Class Period"). Plaintiff seeks to pursue remedies under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased iDreamSky securities during the Class Period, you have until June 1, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
iDreamSky is purportedly the largest independent mobile game publishing platform in China based on the number of active users in 2013. International mobile game developers grant the Company access to the source codes of their games, purportedly allowing for greater control and efficiency in redesigning their games for the China market. The Company distributes these games through both its proprietary distribution channels and third-party channels, such as app stores and device pre-installations.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had overstated its ability to monetize its user base and effectively integrate its distribution channels; (2) that, as a result, the Company had to lower its earnings guidance; and (3) that, as a result of the foregoing, the Company's statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis.
On August 7, 2014, iDreamSky priced its IPO of 7,700,000 American depositary shares ("ADS"), with each ADS representing four Class A ordinary shares of the Company, at a price of $15.00 per ADS, exclusive of the underwriters' exercise of their over-allotment option to purchase 1,155,000 additional ADSs.
On March 13, 2015, after the market closed, the Company lowered its revenue guidance for the fourth quarter of 2014 to be between RMB327.0 million (USD $52.7 million) and RMB329.0 million (USD $53.0 million), as compared to the previously announced revenue guidance of between RMB390.0 million (USD $62.9 million) and RMB410.0 million (USD $66.1 million). According to the Company, the revised guidance reflected the delay of a popular game, launched on one of the Company distribution platforms, and lower than expected revenues from another game being launched simultaneously as other hit games on the same distribution platform.
On this news, ADSs of iDreamSky declined $3.60 per share, over 33%, during to close on March 16, 2015 at $7.22 per share, on unusually heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.