According to the Complaint, Sea Limited, together with its subsidiaries, provides digital entertainment, ecommerce, and digital financial services in Asia, Latin America, and internationally. The Company operates Garena, a digital entertainment platform for users to access mobile and computer online games, as well as eSports operations; Shopee, an e-commerce platform and mobile-centric marketplace that provides integrated payment and logistics infrastructure and seller services; and SeaMoney, a digital financial services platform that serves individuals and businesses, providing, inter alia, payment processing services, credit offerings, and digital bank services under various brands.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sea overstated its ability to manage the growth of its user base and loan book while enhancing its profitability; (ii) Sea's expansion to a broader user base and growing loan book rendered the Company significantly more vulnerable to higher credit losses; (iii) as a result, the Company was likely to book a significant increase in loan loss reserves; (iv) the foregoing was likely to have a significant negative impact on Sea's earnings; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.
On October 6, 2023, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 23-CV-01455.
Lead Plaintiff filed a consolidated Complaint on December 22, 2023. Defendants filed a Motion to Dismiss the consolidated Complaint on February 20, 2024. On August 7, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
On March 14, 2025, the parties entered into a Stipulation of Settlement.
