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Changyou.com Limited Class Action Lawsuit

17 days left to seek lead plaintiff status

Case Summary

Company Name
Changyou.com Limited
Stock Symbol
CYOU
Class Period
February 14, 2020 to April 23, 2020
Motion Deadline
February 6, 2021
Court
Eastern District of New York

The Changyou.com Limited class action lawsuit asserts claims under Sections 10(b), 13(e), and 20(a) of the Securities Exchange Act of 1934 and seeks to represent all persons and entities that either held publicly traded Changyou American Depositary Shares (“ADSs”) on April 23, 2020 or sold such shares during the period between February 14, 2020 and April 23, 2020 (the “Class Period”).  The Changyou class action lawsuit was commenced on December 8, 2020 in the Eastern District of New York and is captioned ODS Capital LLC v. Changyou.com Limited, No. 20-cv-05973.

Changyou was a publicly traded gaming company that offered personal computer and phone application games to consumers in China.  In 2009, Changyou conducted a public offering of ADSs in the United States.  Sohu.com Limited (“Sohu.com”) was Changyou’s controlling stockholder at all relevant times.  On January 24, 2020, Changyou, Sohu.com (Game) Limited (“Sohu Game”), Sohu.com, and Changyou Merger Co. Limited (“Merger Co.”) entered into an agreement and plan of merger (the “Merger Agreement”), whereby Merger Co. agreed to merge with and into Changyou (the “Merger”).  As part of the Merger, Shou.com agreed to acquire the remaining shares it did not own in Changyou for $5.40 per Class A share and $10.80 per ADS.  On February 14, 2020, Changyou, Sohu.com, Sohu Game, and Merger Co. jointly filed a Rule 13E-3 Transaction Statement under Section 13(e) of the Securities Exchange Act of 1934 (the “Transaction Statement”).

The Changyou class action lawsuit alleges that the Transaction Statement contained false and misleading statements regarding the existence of dissenters’ rights (also known as appraisal rights) pursuant to Cayman Islands law.  The Changyou class action lawsuit further alleges that the Transaction Statement failed to disclose other rights that may have been available to Changyou shareholders under Cayman Islands law, in clear violation of the federal securities laws.

On April 17, 2020, the Merger closed without the truth being revealed.  Pursuant to the Merger Agreement, Sohu Game, through its depositary institution acting as paying agent, purchased all outstanding Changyou ADS shares for $10.80 per share on April 23, 2020.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

The Private Securities Litigation Reform Act of 1995 permits any investor who held Changyou ADSs on April 23, 2020 or sold such shares during the Class Period to seek appointment as lead plaintiff in the Changyou class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Changyou class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Changyou class action lawsuit.  An investor’s ability to share in any potential future recovery of the Changyou class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Changyou class action lawsuit or have questions concerning your rights regarding the Changyou class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Changyou class action lawsuit must be filed with the court no later than February 8, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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