"Yalla Group" announces the voluntary withdrawal of a case against it in the United States
"Yalla Group Ltd.", headquartered in the UAE and listed on the New York Stock Exchange, announced the voluntary withdrawal of the class action lawsuit filed against the company and its CEO, by the main plaintiff on January 12, 2022, thus ending the lawsuit against the company permanently in Company interest.
The group explained in a statement that the lawsuit was filed due to some short sale reports issued in May 2021, which included several errors and distorted, misleading and unsupported allegations against the company.
It added that although the allegations in the short seller reports had been publicly rebutted by the group, a class action lawsuit had been filed against the company and its CEO in the United States, based on the allegations in the short-selling reports, alleging that the company had violated market rules and securities laws. American finance.
The US court has ordered the lead plaintiffs and their attorneys to support their claim with real evidence and documents, to amend their complaint accordingly, and to resubmit it by January 7, 2022. Despite being given sufficient time, the plaintiffs and their attorneys failed to resubmit the complaint by the court's deadline.
At that time, the plaintiffs and their attorneys decided not to continue the case, and voluntarily withdrew it on January 12, 2022, and agreed to bear the costs of the case.
The group pointed out that, by doing so, it prevents the main plaintiffs from resubmitting the same allegations against the company, stressing that all the lawsuits filed against the company's CEO, who was chosen as a defendant in the case, have also been withdrawn.
The court agreed to voluntarily withdraw the case on January 13, 2022, and the case file was closed permanently.
The company emphasized throughout the litigation period that the lawsuit filed against it was baseless and that the plaintiffs’ and their lawyers’ decision to withdraw all their claims voluntarily confirms the correctness of what the company said from the first moment that the allegations contained in the short sale reports are completely untrue.
It is noteworthy that "Yalla Group Ltd." was established in 2016 and has evolved to become the owner of the largest audio platform for digital entertainment and social networking in the Middle East and North Africa.
The “Yalla” application is one of the group’s most popular applications that have been specifically designed to suit the local cultures of Middle Eastern societies.
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