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SE.US
id: 1619
Sea Limited (SE) $40M Investor Settlement
$40,000,000
Cash SettlementSupreme
Court151344/2022
Case number09/14/2021
Class period Start02/28/2025
Class period End08/04/2025
Claim deadlineSea Limited has agreed to settle $40M with $SE investors to resolve claims that it misled them about regulatory risks related to its hit game, Free Fire, in the Indian market.
Outline
In 2021, Sea raised over $6 billion through offerings, promoting growth in its gaming and e-commerce businesses. But in early 2022, India banned Free Fire, Sea’s most profitable game, citing national security concerns. $SE dropped 18% in one day, and investors filed a lawsuit claiming the company failed to warn about the risk.
Timeline
- September 14, 2021 – Sea conducted offerings of ADS and convertible senior notes.
- February 14, 2022 – India officially banned Free Fire. $SE fell 18%.
- February 11 & June 17, 2022 – Investors filed lawsuits.
- May 28, 2024 – Court reinstated claims tied to the Free Fire ban.
- October 15, 2024 – Parties entered mediation.
- March 4, 2025 – Sea agreed to a $40 million settlement.
Background
In September 2021, Sea Limited raised capital through a dual offering of American Depositary Shares (ADS) and convertible notes. The company emphasized the growth of its Garena gaming division, particularly in India, where Free Fire was one of its top titles.
Just months later, in February 2022, India abruptly banned Free Fire along with other apps linked to Chinese entities, citing national security concerns. The ban directly impacted Sea’s top-line revenue potential and took the market by surprise.
$SE dropped 18% in a single day, losing over $16 billion in value. Investors filed a lawsuit alleging that Sea failed to warn them about the possibility of a ban, even though the company was aware of the scrutiny in India prior to the offering.
What Can Investors Expect Now?
Sea Limited has agreed to settle $40M with $SE investors to resolve claims that it misled them about regulatory risks related to its hit game, Free Fire, in the Indian market.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Type
US Securities Class Action
Case Status
Distribution Preparation
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Fraud,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Payout per Share
4.24
Filing date
02/11/2022
Plaintiffs
City of Taylor Police and Fire Retirement System; General Retirement System of the City of Detroit
Attorneys
Robbins Geller Rudman & Dowd LLP; Abraham, Fruchter & Twersky, LLP
Defendants
Forrest Xiaodong Li ; Tony Tianyu Hou; Khoon Hua Kuok ; David Heng Chen Seng; Yuxin Ren ; Gang Ye
Judge
Andrew Borrok
Administrator
Verita Global
Court hearing date
08/07/2025
Exclusion deadline
07/07/2025
Objection deadline
07/07/2025
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How to get your payout?
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