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DOYU.US
id: 759

DouYu International (DOYU) $2.25M Investor Settlement

$2,250,000
Cash Settlement
D. New Jersey
Court
2:23-cv-3161
Case number
04/30/2021
Class period Start
02/23/2024
Class period End
07/21/2025
Claim deadline

DouYu (DOYU) agreed to pay $2.25M to investors to settle claims that it misled them about the risk of aggressive Chinese government action due to concerns over gaming addiction and content.

Case Details:
On May 9, 2023, DouYu International Holdings Limited (DOYU) filed a current report on Form 6-K with the SEC, which contained a press release stating that the “the CyberSpace Administration of China (CAC) has sent an inspection team to the Company due to certain alleged violations of content rules and regulations on its platform.

  • The CAC team is expected to conduct a one-month on-site inspection of the Company’s content platform, which DouYu will fully cooperate with.

  • DouYu is also concurrently conducting a comprehensive internal review of its content monitoring system.

  • As a platform committed to regulatory compliance and the safety of its user community, DouYu plans to implement all necessary remedial measures based on the CAC inspection and its own internal review. DouYu is expected to maintain its normal operations during this period of time.”

On this news, $DOYU fell 9.33%, damaging shareholders.
Taking all facts into account, Investors have reasons to suspect DouYu and its Accountables of misleading statements and failing to disclose important facts about its business operations.
Case Type
US Securities Class Action
Case Status
Claim Submission Closed
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Negligence, 
Omissions
Suspected Party
Directors, 
Management, 
Service Provider
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.045
Filing date
06/09/2023
Lead Plaintiff Deadline
08/09/2023
Plaintiffs
David Rigo Fernandez
Attorneys
The Rosen Law Firm, P.A. (Newark, NJ)
Defendants
Shaojie Chen, Mingming Su
Judge
Evelyn Padin
Administrator
Strategic Claims Services
Settlement agreement date
2024-07-30
Court hearing date
08/18/2025
Exclusion deadline
07/28/2025
Objection deadline
07/28/2025
Attorney fee
$810,000
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons or entities who purchased or otherwise acquired DouYu American Depositary Shares during the period from April 30, 2021, through November 27, 2023, inclusive, and were damaged thereby.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.045 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.18 per share.

What is 11th Estate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

1. Prepare documents for your payout

2. Audit the claim and make sure you get the maximum possible payout

3. File a claim with the settlement administration

4. Correspond with the settlement administration to resolve emerging issues

5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.