iDreamsky Technology Limited ("iDreamSky" or the Company) operates as a mobile game publisher in the Peoples Republic of China.

According to the law firm press release, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had overstated its ability to monetize its user base and effectively integrate its distribution channels; (2) that, as a result, the Company had to lower its earnings guidance; and (3) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

On March 13, 2015, after the market closed, the Company lowered its revenue guidance for the fourth quarter of 2014 to be between USD $52.7 million and $53.0 million, as compared to the previously announced revenue guidance of between $62.9 million and $66.1 million. According to the Company, the revised guidance reflected the delay of a popular game, launched on one of the Company distribution platforms, and lower than expected revenues from another game being launched simultaneously as other hit games on the same distribution platform. On this news, ADS of iDreamSky declined $3.60 per share, or over 33%, to close on March 16, 2015 at $7.22 per share, on unusually heavy volume.

Plaintiff filed a consolidated Complaint on March 25, 2016.

On February 22, 2017, the Court issued an Order granting in part and denying in part Defendants' motions to dismiss.

On April 7, 2017, this case was Ordered stayed pending mediation.

On December 12, 2017, the Parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on December 15. On April 4, 2018, the Court granted final approval of the Settlement and entered Final Judgment. On April 6, the Court issued an amended Order and Final Judgment. On September 10, the Court issued an Order granting Plaintiffs' Motion for distribution of Settlement funds.