Sea Limited
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On May 16, 2023, Sea, a company, released its financial results for the first quarter of 2023, which showed lower-than-expected earnings due to a significant increase in loan loss reserves. The company reported that its provision for credit losses had risen by 120.5% to US$177.4 million in Q1 2023 from US$80.5 million in Q1 2022. This increase was primarily attributed to the company’s expansion to a broader user base and the growth of its loan book.
Additionally, Sea disclosed that its Chief Investment Officer had left that role and joined the Company’s Board of Directors. Following this news, Sea’s stock price dropped by $15.62, or 17.4%, closing at $72.45 per ADS on May 16, 2023, resulting in losses for investors.
A class-action complaint filed against Sea alleges that the company and its executives made materially false and/or misleading statements during the Class Period. They failed to disclose material adverse facts about the Company’s business, operations, and prospects. The allegations include the company overstating its ability to manage the growth of its user base and loan book while enhancing profitability. The expansion to a broader user base and growing loan book was said to render the company significantly more vulnerable to higher credit losses. As a result, the company was likely to book a significant increase in loan loss reserves, leading to a negative impact on earnings. The complaint suggests that Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and lacked a reasonable basis at all relevant times.
