SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Xunlei Limited - XNET

NEW YORK, Jan. 23, 2018

The investigation concerns whether Xunlei and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

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On October 10, 2017, Xunlei issued a press release announcing the Company's introduction of OneCoin (subsequently renamed Lianke), a blockchain-based product.  On January 12, 2018, the National Internet Finance Association of China issued a "Risk Alert" notice regarding "Disguised ICO [Initial Coin Offering] Activities" (the "Risk Alert Notice").  The Risk Alert Notice referenced a September 2017 notice issued jointly by seven Chinese government ministries, which stated, in part, that "ICO activities are suspected of involving illegal criminal activities including illegal fund-raising, illegal issuance of securities, and illegal sail of notes and bonds" and "all institutions and individuals should immediately stop engaging in ICO activities."  The Risk Alert Notice further stated that "[i]n the case of Lianke issued by Xunlei . . . the issuing company in effect substitutes Lianke for the duty to pay back project contributors with legal tender, making it essentially a financing activity and a form of disguised ICO." 

On this news, Xunlei's American depositary share price fell $6.27, or 27.4%, to close at $16.63 on January 12, 2018.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT: 
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com