Pomerantz LLP announces that a class action lawsuit has been filed
against Xunlei Limited (“Xunlei” or the “Company”)
XNET, -0.08%
and
certain of its officers. The class action, filed in United States
District Court, for the Southern District of New York, and docketed
under 18-cv-00646, is on behalf of a class consisting of investors who
purchased or otherwise acquired Xunlei securities, seeking to recover
compensable damages caused by defendants’ violations of the Securities
Exchange Act of 1934.
If you are a shareholder who purchased Xunlei securities between October
10, 2017, and January 11, 2018, both dates inclusive, you have until
March 20, 2018, 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, Ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address,
telephone number, and the number of shares purchased.
[Click
here to join this class action]
Xunlei is a cloud-based acceleration technology company operating an
internet platform in China based on cloud technology to enable users to
access, manage, and consume digital media content. The Company’s main
product is OneCloud, a network linked storage device allowing multiple
users to share online storage remotely and a “mining machine” for users
to share their idle bandwidth with Xunlei’s content delivery networks.
On October 10, 2017, Xunlei issued a press release announcing the
introduction of “OneCoin”, a blockchain-based product with no central
bank endorsed value. OneCoin was subsequently renamed “Lianke”.
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 that:
(i) Xunlei had engaged in an unlawful financial activity; (ii) OneCoin
was a form of disguised initial coin offering (“ICO”); (iii) Xunlei was
engaged in the promotion of an Initial Miner Offering (“IMO”); and (iv)
as a result of the foregoing, Defendants’ statements about Xunlei’s
business, operations, and prospects, were false and misleading and/or
lacked a reasonable basis.
On or about November 24, 2017, various news outlets in China reported
that Xunlei’s business partner Shenzhen Xunlei Big Data Information
Services Company Ltd. (“Big Data”) was accusing Xunlei of conducting an
unlawful ICO through the Company’s OneCoin project.
On this news and over the course of two trading days, the Company’s ADS
price declined $6.33 from a close on November 24, 2017, at $24.91 per
ADS, to a close at $18.58 per ADS on November 28, 2017, a drop of
approximately 25.41%.
On November 29, 2017, Xunlei issued a press release entitled “Xunlei
Provides Clarification on Recent Market Development,” announcing an
update on its business relationship with Big Data. The press release
stated, in part, that Xunlei has requested Big Data to stop using the
“Xunlei” brand name immediately and also terminated its right to use the
“Xunlei” brand.
On this news, the Company’s ADS price declined $5.78 from a close on
November 28, 2017, at $18.58 per ADS, to a close at $12.80 per ADS on
November 29, 2017, a drop of approximately 31.1%.
On January 12, 2018, the National Internet Finance Association of China
issued a “Risk Alert” notice regarding “Disguised ICO [Initial Coin
Offering] Activities” (the “Risk Alert Notice”). The Risk Alert Notice
referenced a September 2017 notice issued jointly by seven government
ministries, which stated, in part, that “ICO activities are suspected of
involving illegal criminal activities including illegal fund-raising,
illegal issuance of securities, and illegal sale of notes and bonds” and
“all institutions and individuals should immediately stop engaging in
ICO activities.” The Risk Alert Notice further stated that “[i]n the
case of Lianke issued by Xunlei . . . the issuing company in effect
substitutes Lianke for the duty to pay back project contributors with
legal tender, making it essentially a financing activity and a form of
disguised ICO.”
On this news, the Company’s ADS price declined $6.27 from a close on
January 11, 2018, at $22.90 per ADS, to a close at $16.63 per ADS on
January 12, 2018, a drop of approximately 27.38%.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and
Paris, 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 80 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
View source version on businesswire.com: http://www.businesswire.com/news/home/20180303005001/en/
SOURCE: Pomerantz LLP
Pomerantz LLP
Robert S. Willoughby
rswilloughby@pomlaw.com
Copyright Business Wire 2018