Tuya Inc.

Ticker: TUYA

Registration Deadline: 10/11/2022

A securities class action lawsuit has been filed in the USDC, SDNY, on behalf of purchasers of the securities of Tuya Inc. (NYSE: TUYA) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Tuya’s March 2021 initial public offering (the “IPO”). 

The Complaint alleges that the defendants made materially false and misleading statements and omissions in the Registration Statement. The defendants failed to disclose the following adverse facts that existed at the time of the IPO:
  • a material portion of Tuya’s China-based customers were engaged in the widespread and systematic manipulation of reviews and product offerings in violation of Amazon.com’s terms of use;
  • prior to the IPO, a consumer investigation and data breach had exposed an illicit fake review scheme being perpetrated by many of Tuya’s clients, among others, which included, among other things, the exposure of 13 million records of organized fake review scams linked to over 200,000 Amazon account profiles;
  • as a result, there was a substantial risk that a material portion of Tuya’s significant customers would be barred from using Amazon.com’s platform, negatively impacting Tuya’s business, revenue, earnings, and prospects; and
  • as such, the Registration Statement’s representations regarding Tuya’s historical financial and operational metrics and purported market opportunities and expected growth did not accurately reflect the actual business, operations, financial results, and trajectory of the Company at the time of the IPO.

    By August 2022, Tuya ADS had dropped below $2 per ADS – 90% below the price at which Tuya ADSs were sold to the investing public in the IPO. At the time of the filing of this complaint, the price of Tuya ADSs has remained significantly below the IPO price.

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