Shareholder Alert: Robbins Arroyo LLP Reminds Investors Tencent Music Entertainment Group (TME) Sued for Misleading Shareholders

Business Wire 11-Oct-2019 6:31 PM

Shareholder rights law firm Robbins Arroyo LLP reminds investors that a purchaser of Tencent Music Entertainment Group (NYSE:TME) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between December 12, 2018 and August 26, 2019. Tencent Music operates online music entertainment platforms that provide music streaming, online karaoke, and live streaming services.

If you suffered a loss as a result of Tencent Music's misconduct, click here.

Tencent Music Entertainment Group (TME) Accused of Misleading Investors

According to the complaint, in December 2018, Tencent Music completed its initial public offering ("IPO") of 41,029,829 ADSs for $13.00 per ADS. In its official filings with the SEC, Tencent Music highlighted its "strong partnerships" with a wide range of music labels including Sony Music Entertainment, Universal Music Group, Warner Music Group, and others, assuring that its business competed within normal competitive conditions and that its sub-licensing was "in accordance with the terms of relevant master license and distribution agreements." However, these representations were materially false and failed to disclose that Tencent Music's exclusive licensing arrangements with major record labels were actually anticompetitive, which allowed Tencent Music to charge unreasonably expensive sublicensing fees, violating Chinese antimonopoly laws. Then, on August 27, 2019, Bloomberg reported that China's antitrust authority was investigating the exclusive licensing deals between Tencent Music Group and the previously mentioned major record labels. On this news, Tencent Music ADSs fell 6.8% to close at $12.57 and have yet to recover.

Tencent Music Entertainment Group (TME) Shareholders Have Legal Options

Contact us to learn more: Leo Kandinov (800) 350-6003 Shareholder Information Form

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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