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INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Yalla Group Limited (YALA) Investors

September 2, 2021 GMT

BENSALEM, Pa.--(BUSINESS WIRE)--Sep 2, 2021--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Yalla Group Limited (“Yalla” or the “Company”) (NYSE: YALA ) American Depository Shares (“ADSs” or “shares”) between September 30, 2020 and August 9, 2021, inclusive (the “Class Period”). Yalla investors have until October 12, 2021 to file a lead plaintiff motion.

Investors suffering losses on their Yalla investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

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On May 19, 2021, Swan Street Research published a report alleging, among other things, that Yalla inflated its financial metrics, including its user data and its revenue, and characterized Yalla’s financial statements as “not credible.”

On this news, the Company’s share price fell $1.31, or 7%, to close at $17.01 per share on May 19, 2021.

Then, on May 20, 2021, The Bear Cave published a report and Gotham City Research tweeted that it was shorting Yalla.

On this news, the Company’s share price fell 6% to close at $15.96 per share on May 20, 2021.

Then, on August 9, 2021, after the market closed, Yalla announced its second quarter 2021 financial results, reporting revenue of $66.62 million, which fell below analysts’ expectations.

On this news, the Company’s share price fell approximately 19% to close at $10.99 per share on August 10, 2021.

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) the Company overstated its user metrics and revenue; and (2) 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.

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If you purchased Yalla ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210902005690/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2021.

PUB: 09/02/2021 12:55 PM/DISC: 09/02/2021 12:55 PM

http://www.businesswire.com/news/home/20210902005690/en