Sea Limited
Settlement of Laborers District Council Construction Industry Pension Fund, et al., v. Sea Limited, et al.
No. CV-23-01455-PHX-DLR
The parties reached a settlement of this action, pending in the United States District Court for the District of Arizona. The settlement provides for the payment of $46 million for the benefit of eligible Class Members. Lead Plaintiff Laborers District Council Construction Industry Pension Fund alleged that, throughout the Class Period, Sea Limited (“Sea” or the “Company”) and several of its high-level executives issued materially false and misleading statements and omissions regarding the Sea’s Garena (gaming) and Shopee (e-commerce) business lines. Specifically, Lead Plaintiff alleged that Defendants misrepresented: (a) the effect of losing the hit online video game League of Legends on Garena’s financial results and user metrics; and (b) the sustainability of the Company’s publicized “pivot to profitability” and the effect that Sea’s drastic cost-cutting measures would have on Shopee’s growth and market share. As a result of these misrepresentations, Sea’s American Depositary Shares (“ADSs”) traded at artificially inflated prices during the Class Period. However, as the truth concealed by Defendants’ misrepresentations began to reach the market in May 2023 and continued to leak out thereafter in August and November 2023, the price of Sea ADSs significantly declined – damaging investors.
The Class consists of all Persons who purchased or otherwise acquired the Sea’s publicly traded ADSs during the period from November 15, 2022 through August 14, 2023, both dates inclusive. Excluded from the Class are: Defendants, the officers and directors of Sea (at all relevant times), members of their immediate families, and their legal representatives, heirs, successors or assigns, and any entity in which any Defendant has a controlling interest. Also excluded from the Class are those Persons who would otherwise be a Class Member but who timely and validly excluded themselves in accordance with the requirements set by the Court.
The settlement was approved by the Court on July 11, 2025.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.
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