Sea Loses Bid to Beat Shareholder Lawsuit Over Business Claims

Sea Ltd. was unable to escape a lawsuit from shareholders who allege the internet company hid negative trends in two lines of business.

Investors say Sea made a series of false and misleading statements about its digital entertainment platform, Garena, and e-commerce platform, Shopee, in an attempt to shore up the plummeting price of Sea’s stock in the midst of a self-described crisis.

Judge Douglas Rayes in the US District Court for the District of Arizona allowed much of the lawsuit to move forward in a Wednesday ruling.

The lawsuit stems from a series of statements Singapore-based Sea made ...