Bilibili Investors Ask Pomerantz to Investigate Securities Fraud

The premier firm specializing in securities, corporate and antitrust litigation, Pomerantz LLP, announced it is investigating claims on behalf of investors of the online entertainment services provider in China, Bilibili Inc. Details regarding the new probe emerged Thursday, September 21, 2023.

The investigation by Pomerantz will seek to determine if some Bilibili directors or officers have been involved in securities fraud. Additionally, the leading law firm will seek to determine if Bilibili directors and/or officers, were involved in other activities that are unlawful.

The announcement about the investigation comes after earlier this month, Bilibili’s Uma Musume Pretty Derby mobile game was abruptly removed from Apple and Android online stores. At the time, the company said that the title needed to undergo “technical upgrades.”

“Pomerantz LLP is investigating claims on behalf of investors of Bilibili Inc. The investigation concerns whether Bilibili and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices,“

reads a statement released by Pomerantz

The unexpected action captured the attention of industry observers who spoke about the mobile game’s female characters with horse tails and ears, also referred to as “horse girls.” Experts in the gaming sector flagged that those characters reminded of horse racing. This is an issue, considering that the game may be interpreted as a method for promoting illegal gambling. It’s no surprise that such actions are in breach of the gambling regulations in China.

The removal of Bilibili’s game from online mobile stores had an immediate impact on its American Depositary Share price. Back on September 8, 2023, when the removal was announced, the company’s ADS price fell by 5.17% or $0.74 per ADS, closing at $13.56 per share for the day.

The unexpected closure of Bilibili’s mobile game comes in the context of the tightly regulated video game market in China. While online gambling in mainland China is illegal, some individuals gamble online by using third-party banking platforms and VPNs.