NASDAQ GS
DSKY

iDreamSky Technology Limited

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against iDreamSky Technology Limited (NASDAQ GS: DSKY)

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the American Depository Shares (“ADSs”) of iDreamSky Technology Limited (“iDreamSky” or the “Company”) (NASDAQ GS: DSKY) between August 8, 2014 and March 13, 2015, inclusive, including those investors who acquired iDreamSky ADSs pursuant or traceable to its initial public offering (“IPO”) commenced on or about August 7, 2014 (collectively, the “Class Period”) alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of iDreamSky during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public: (1) that the Company had overstated its ability to monetize its user base and effectively integrate its distribution channels; (2) that, as a result, the Company had to lower its earnings guidance; and (3) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on March 13, 2015, the Company announced updates to its previous revenue guidance for the fourth quarter of 2014.  The Company estimated its revenue guidance for the fourth quarter of 2014 to be between RMB327.0 million (US$52.7 million) and RMB329.0 million (US$53.0 million), as compared to the previously announced revenue guidance of between RMB390.0 million (US$62.9 million) and RMB410.0 million (US$66.1 million).  The revised guidance was mainly attributed to the delayed launch of a popular casual game on one of the Company’s distribution platforms, and that the monetization of another popular casual game was less than expected due to the simultaneous launch of other hit games on the same distribution platform.

On this news, ADSs in iDreamSky plummeted more than 33%, closing at $7.22 per share on March 16, 2015.

If you wish to serve as lead plaintiff, you must move the Court no later than June 1, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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