NEW YORK, June 26, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Xunlei Limited (“Xunlei” or the “Company”) (NASDAQ:XNET) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 15-cv-04524, is on behalf of a class consisting of all persons or entities who purchased Xunlei American Depository Shares (“ADSs”) (1) pursuant and/or traceable to the Company’s registration statement and prospectus (defined below) issued in connection with the Company’s initial public offering on or about June 24, 2014 (the “IPO” or the “Offering”); and/or (2) on the open market between June 24, 2014 and May 20, 2015, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Xunlei securities during the Class Period, you have until August 7, 2015 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 number of shares purchased.
Xunlei Limited operates an Internet platform for digital media content in the People's Republic of China.
The complaint alleges that during the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, prospects and performance. Specifically, the Company failed to disclose the material risk that its focus on Project Crystal and its mobile initiative would have a detrimental impact on the Company’s financial condition.
On June 24, 2014, Xunlei conducted its initial public offering (“IPO”) and raised approximately $88 million. On May 20, 2015, Xunlei announced its unaudited financial results for the first quarter ended March 31, 2015, which revealed revenues of $30.2 million, down 8.4% year-over-year, and an operating loss of $1.4 million, compared with an operating income of US$3.8 million in the corresponding period of last year.
On this news, shares of Xunlei fell sharply during intraday trading on May 21, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Florida, 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 70 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.