The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court of Arizona on behalf of all persons or entities who acquired Sea Limited (“Sea” or the “Company”) (NYSE: SE) securities from April 23, 2022 through May 15, 2023 (the “Class Period”). Investors have until September 19, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Sea, together with its subsidiaries, provides digital entertainment, e-commerce, and digital financial services internationally.
On May 16, 2023, Sea issued a press release announcing its financial results for the first quarter of 2023. Among other items, Sea reported that “[o]ur provision for credit losses increased by 120.5% to $177.4 million in the first quarter of 2023 from $80.5 million in the first quarter of 2022, primarily driven by expansion to a broader user base and the growth of our loan book.” Sea also disclosed that the Company’s previous Chief Investment Officer, David Ma, had left that role and joined the Company’s Board of Directors. As explained in an article published the same day by investor news website Seeking Alpha, titled “Sea Ltd plunges 17% as Q1 earnings miss estimates despite ecommerce strength,” the Company’s sharp increase in loan loss reserves caused Sea to drastically miss expected earnings for the quarter. On this news, the price of Sea American Depositary Shares (“ADS”) declined by $15.62 per ADS, or approximately 17.74%, from $88.07 per ADS to close at $72.45 on May 16, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Sea overstated its ability to manage the growth of its user base and loan book while enhancing its profitability; (ii) Sea’s expansion to a broader user base and growing loan book rendered the Company significantly more vulnerable to higher credit losses; (iii) as a result, the Company was likely to book a significant increase in loan loss reserves; and (iv) the foregoing was likely to have a significant negative impact on Sea’s earnings.
If you acquired Sea securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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