SAN FRANCISCO, Aug. 9, 2022 (GLOBE NEWSWIRE) — Hagens Berman calls on Tuya Inc. YOURS investors with significant losses Submit your losses now.

Relevant period: March 15, 2021 – August 9, 2022
Deadline for lead plaintiff: October 11, 2022
Visit: www.hbsslaw.com/investor-fraud/TUYA
Contact a lawyer now: [email protected]
844-916-0895

Tuya Inc. (LFST) Securities Class Action:

The case is being brought on behalf of all investors who purchased or are traceable to Tuya ADS in the company’s IPO in March 2021.

In particular, Tuya’s IPO documents touted the company’s historic growth, claiming it was fueled by the “thriving ecosystem” of customers made up of brands, OEMs, industry operators and system integrators, which generate revenue for Tuya from the sale of Products generated through e-commerce marketplaces like Amazon.com

The declarations allowed Tuya to go public, raising over $946 million in gross proceeds.

The complaint alleges that the IPO documents failed to disclose that: (1) a significant portion of Tuya’s China-based customers engaged in the widespread and systematic manipulation of reviews and product listings that violated Amazon.com’s Terms of Service; violate (2) prior to the IPO, a consumer investigation and data breach had uncovered 13 million records of organized fraud involving fake reviews linked to over 200,000 Amazon account profiles; and (3) as a result, there was a significant risk that a significant portion of Tuya’s significant customers would be prevented from using Amazon.com’s platform, adversely affecting Tuya’s business, revenues, earnings and prospects .

Shortly after the IPO, the financial press reported that Amazon.com had suspended hundreds of thousands of accounts after it discovered a massive fake review scam and shut down 340 online stores at one of its largest Chinese retailers in the first half of this year.

When Tuya reported disappointing second quarter 2021 results on August 18, 2021, management blamed the results and outlook on the strict implementation of Amazon.com’s seller policy.

As a result, Tuya ADSs act almost…