NEW YORK, Sept. 09, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in Tuya Inc. (“Tuya” or the “Company”) (NYSE: TUYA). Those investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, extension 7980.

The investigation concerns whether Tuya and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

[Click here for information about joining the class action]

On or about March 18, 2021, Tuya completed its initial public offering (“IPO”), selling more than 45 million American Depositary Shares (“ADSs”) at a price of $21.00 per ADS. On May 11, 2021, an article on techcrunch.com revealed that “several Chinese top sellers have disappeared from Amazon” in the past few days. The article reported that over 13.1 million records were uncovered documenting a massive fake review scam involving more than 200,000 Amazon accounts. The article added: “[i]Collectively, the suspended accounts contribute over $1 billion in gross merchandise value (GMV) to Amazon.” The article quotes Amazon as saying, “’We take swift action against those who break the law [our policies], including the suspension or rescission of any selling privileges.’” Then, on August 18, 2021, Tuya issued a press release announcing the company’s financial results for the second quarter of 2021. The company expects earnings to be in a range of only 83 to $86 million, which surprised and disappointed analysts and investors. During a conference call with analysts and investors held the same day, Chief Financial Officer Yao (Jessie) Liu revealed the reason for the low third-quarter revenue guidance, stating, “Our customers are facing a number of challenges, including the strict implementation of the vendor policy Amazon,” in which Amazon had banned cross-border e-commerce…