|Company Name||Sea Limited|
|Class Period||April 23, 2022 to May 15, 2023|
|Lead Plaintiff Motion Deadline||September 19, 2023|
On May 16, 2023, Sea released its first quarter 2023 financial results, reporting lower-than-expected earnings due to a sharp increase in loan loss reserves. The Company disclosed that its “provision for credit losses increased by 120.5% to US$177.4 million in the first quarter of 2023 from US$80.5 million in the first quarter of 2022, primarily driven by expansion to a broader user base and the growth of [its] loan book.” Further, Sea also announces that its previous Chief Investment Officer had left that role and joined the Company’s Board of Directors.
On this news, Sea’s stock price fell $15.62, or 17.4%, to close at $72.45 per ADS on May 16, 2023, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Sea overstated its ability to manage the growth of its user base and loan book while enhancing its profitability; (2) Sea’s expansion to a broader user base and growing loan book rendered the Company significantly more vulnerable to higher credit losses; (3) as a result, the Company was likely to book a significant increase in loan loss reserves; (4) the foregoing was likely to have a significant negative impact on Sea’s earnings; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Submit Your Information
If you suffered a loss on your Sea Limited investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.