Bernstein Liebhard LLP Investigates Claims on Behalf of Those Who Invested in iDreamSky Technology Ltd.
March 16, 2015
Bernstein Liebhard LLP is investigating whether iDreamSky Technology, Ltd. (“iDreamSky” or the “Company”) (NASDAQ: DSKY) issued materially false and misleading statements to investors in violation of the federal securities laws.
iDreamSky is an independent mobile game publishing platform in China. iDreamSky went public in August 2014. The Company’s IPO netted $115.5 million as it offered 7.7 million iDreamSky American Depositary Shares (ADSs) at $15.00 per share. In the prospectus for iDreamSky’s IPO, the Company touted its competitive strengths, including its ability to “monetize [its] user base and…integrate and penetrate into distribution channels.” The Company also touted its “unique and effective proprietary distribution channels.”
Yet, seven months later, on March 13, 2015, in an aftermarket release, iDreamSky drastically reduced its previously issued revenue guidance for the fourth quarter of 2014 because the “the launch of a popular casual game was delayed on one of the Company distribution platforms” and “the monetization of another popular casual game was less than expected due to the simultaneous launch of other hit games on the same distribution platform.” The Company slashed its revenue guidance almost 20% for the fourth quarter of 2014 to between RMB327.0 million (US$52.7 million) and RMB329.0 million (US$53.0 million), as compared to the previously announced revenue guidance of between RMB390.0 million (US$62.9 million) and RMB410.0 million (US$66.1 million). In other words, the Company attributed the lowered guidance to areas it had trumpeted as strengths in its IPO prospectus – its ability to monetize its user base and integrate and penetrate distribution channels.
On March 16, 2015, the first trading day after the Company’s March 13th aftermarket release, shares of iDreamSky plummeted about 30%, from a March 13, 2015 closing price of $10.82 per share to $7.63 in intra-day trading on March 16, 2015.
If you invested in iDreamSky and lost money, either in the Company’s IPO or afterwards, and are interested in discussing your rights and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.