iDreamSky Technology Limited
Robbins Arroyo LLP: iDreamSky Technology Limited (DSKY) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of iDreamSky Technology Limited (NASDAQGS: DSKY) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 and Securities Exchange Act of 1934 between August 8, 2014 and March 13, 2015. iDreamSky licenses and operates single player mobile games and mobile online games in the People’s Republic of China.
iDreamSky Misrepresents Its Business Practices
The complaint alleges that iDreamSky made false and misleading statements and failed to disclose material adverse facts about its business, operations, prospects, and performance. Specifically, the complaint alleges that iDreamSky failed to disclose that the company had overstated its ability to monetize its user base and effectively integrate its distribution channels. On March 13, 2015, after the market closed, iDreamSky lowered its revenue guidance for fourth quarter 2014 approximately by $9.9 million USD to approximately $53 million USD. According to the company, the revision of fourth quarter guidance is the result of the delay of a popular game, launched on one of the company’s distribution platforms, and lower than anticipated revenues from another game being launched simultaneously as other hit games on the same distribution platform. On this news, American Depositary Shares of iDreamSky fell $3.60, or over 33%, to close at $7.22 per share.
iDreamSky Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.