SHAREHOLDER ALERT 512 0 Kommentare Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Xunlei Limited of Class Action Lawsuit and Upcoming Deadline – XNET - Seite 2

On or about November 24, 2017, various news outlets in China reported that Xunlei’s business partner Shenzhen Xunlei Big Data Information Services Company Ltd. (“Big Data”) was accusing Xunlei of conducting an unlawful ICO through the Company’s OneCoin project.

On this news and over the course of two trading days, the Company’s ADS price declined $6.33 from a close on November 24, 2017, at $24.91 per ADS, to a close at $18.58 per ADS on November 28, 2017, a drop of approximately 25.41%.

On November 29, 2017, Xunlei issued a press release entitled “Xunlei Provides Clarification on Recent Market Development,” announcing an update on its business relationship with Big Data. The press release stated, in part, that Xunlei has requested Big Data to stop using the “Xunlei” brand name immediately and also terminated its right to use the “Xunlei” brand.

On this news, the Company’s ADS price declined $5.78 from a close on November 28, 2017, at $18.58 per ADS, to a close at $12.80 per ADS on November 29, 2017, a drop of approximately 31.1%.

On January 12, 2018, the National Internet Finance Association of China issued a “Risk Alert” notice regarding “Disguised ICO [Initial Coin Offering] Activities” (the “Risk Alert Notice”). The Risk Alert Notice referenced a September 2017 notice issued jointly by seven government ministries, which stated, in part, that “ICO activities are suspected of involving illegal criminal activities including illegal fund-raising, illegal issuance of securities, and illegal sale of notes and bonds” and “all institutions and individuals should immediately stop engaging in ICO activities.” The Risk Alert Notice further stated that “[i]n the case of Lianke issued by Xunlei . . . the issuing company in effect substitutes Lianke for the duty to pay back project contributors with legal tender, making it essentially a financing activity and a form of disguised ICO.”

On this news, the Company’s ADS price declined $6.27 from a close on January 11, 2018, at $22.90 per ADS, to a close at $16.63 per ADS on January 12, 2018, a drop of approximately 27.38%.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.