Sea Limited (SE) $40M Investor Settlement
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.
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.
Frequently Asked Questions
All persons or entities who purchased or otherwise acquired Sea American Depositary Shares (ADSs) or Sea's 0.25% convertible senior notes due 2026 pursuant and/or traceable to the Offering Materials issued in connection with the company's September 14, 2021 offering, and were damaged thereby.
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.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors 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.