HAGENS BERMAN, NATIONAL PROCEEDINGS – GuruFocus.com

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SAN FRANCISCO, Aug. 16, 2022 (GLOBE NEWSWIRE) — Hagens Berman is urging Tuya Inc. (: TUJA) Investors with significant losses can now file their losses.

Tuya Inc. (LFST) Securities Class Action:

The case is being brought on behalf of all investors who purchased or are traceable to Tuya ADS in the company’s IPO in March 2021.

Notably, Tuya’s IPO documents touted the company’s historic growth and claimed it was fueled by the “thriving ecosystem” of customers made up of brands, OEMs, industry operators and system integrators that generate revenue for Tuya from the sale of products generated via e-commerce marketplaces like Amazon.com

The declarations allowed Tuya to go public, raising over $946 million in gross proceeds.

The complaint alleges that the IPO documents failed to disclose that: (1) a significant portion of Tuya’s China-based customers engaged in the widespread and systematic manipulation of reviews and product listings that violated Amazon.com’s Terms of Service; violate (2) prior to the IPO, a consumer investigation and data breach had uncovered 13 million records of organized fraud involving fake reviews linked to over 200,000 Amazon account profiles; and (3) as a result, there was a significant risk that a significant portion of Tuya’s significant customers would be prevented from using Amazon.com’s platform, adversely affecting Tuya’s business, revenue, earnings and prospects .

Shortly after the IPO, the financial press reported that Amazon.com had suspended hundreds of thousands of accounts after it discovered a massive fake review scam and shut down 340 online stores at one of its largest Chinese retailers in the first half of this year.

When Tuya reported disappointing second quarter 2021 results on August 18, 2021, management blamed the results and outlook on the strict implementation of Amazon.com’s seller policy.

As a result, Tuya ADSs are trading almost 90% below their IPO price.

“We are focused on investors’ losses and proving that Tuya misled investors about his alleged customers,” said Reed Kathrein, the partner at Hagens Berman who led the investigation.

If you have invested in Tuya and are experiencing significant losses or have knowledge that could assist the firm’s investigations, click here to discuss your legal rights with Hagens Berman.

Whistleblower: Those with nonpublic information about Tuya should consider their options to assist in the investigation or use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30 percent of each successful recovery by the SEC. For more information, call Reed Kathrein at 844-916-0895 or E-Mail [email protected].

About Hagens Bermann
Hagens Berman is a national law firm with eight offices in eight cities across the country and over eighty lawyers. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. Visit hbsslaw.com to learn more about the company and its accomplishments. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 844-916-0895

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