iDreamSky Technology Limited (ADS) (NASDAQ: DSKY) Investor Securities Class Action Lawsuit 04/02/2015

If you purchased American Depositary Shares (ADS) of iDreamSky Technology Limited (NASDAQ: DSKY), you might have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
iDreamSky
Case Name: 
iDreamSky Shareholder Class Action Lawsuit 04/02/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: DSKY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/02/2015
Class Period Begin: 
08/07/2014
Class Period End: 
03/13/2015
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
06/01/2015
Date Settled: 
12/15/2017
Settlement Amount: 
$4,150,000
Deadline to Participate in Settlement: 
03/20/2018
Summary: 

April 6, 2018 - The court filed an amended order and final judgement.

April 4, 2018 - The court approved the settlement.

December 15, 2017 - The court preliminarily approved the settlement.

December 12, 2017 - Parties filed a stipulation of settlement.

February 22, 2017 - The court granted in part and denied in part defendants' motions to dismiss.

May 9, 2016 - Defendants filed motions to dismiss.

March 25, 2016 - The lead plaintiff filed an amended consolidated complaint.

January 25, 2016 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

June 1, 2015 - Lead plaintiff motions were filed.

April 2, 2015 - An investor in American Depositary Shares (ADS) of iDreamSky Technology Limited (NASDAQ: DSKY) filed a lawsuit in the U.S. District Court for the Southern District of New York against iDreamSky Technology Limited over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made in connection with the Company’s initial public offering on or about August 7, 2014 and between August 8, 2014 and March 13, 2015.

According to the complaint the plaintiff alleges on behalf of investors of American Depositary Shares (ADS) of iDreamSky Technology Limited (NASDAQ: DSKY) who purchased or otherwise acquired ADS pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with iDreamSky Technology Limited’s initial public offering on or about August 7, 2014 and/or on the open market between August 8, 2014 and March 13, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that iDreamSky Technology Limited had overstated its ability to monetize its user base and effectively integrate its distribution channels, that, as a result,iDreamSky Technology Limited had to lower its earnings guidance, and that, as a result of the foregoing, iDreamSky Technology Limited’s statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

iDreamSky Technology Limited reported that its annual Total Revenue rose from $19.38 million in 2012 to $246.57 million in 2013 and that its Net Loss of $9.29 million in 2012 turned into a Net Income of $28.13 million in 2013.

In August 2014 iDreamSky Technology Limited went public. ADS of iDreamSky Technology Limited (NASDAQ: DSKY) grew to as high as $23.66 per share in early September 2014.

On March 13, 2015, iDreamSky Technology Limited announced a revision its previously issued revenue guidance for the fourth quarter of 2014. iDreamSky Technology Limited lowered its revenue guidance for the fourth quarter of 2014 to be between RMB327.0 million (US $52.7 million) and RMB329.0 million (US $53.0 million), as compared to the previously announced revenue guidance of between RMB390.0 million (US $62.9 million) and RMB410.0 million (US$66.1 million). ADS of iDreamSky Technology Limited (NASDAQ: DSKY) declined to $6.67 per share on March 17, 2015.

On April 2, 2015, NASDAQ: DSKY shares closed at $7.28 per share.