Investors with Substantial Losses Have the Option to Bring BlueCity Holdings Limited Class Action
SAN DIEGO, July 20, 2021 / PRNewswire / – The BlueCity Holdings Limited Class Action Accuses BlueCity Holdings Limited (NASDAQ: BLCT), Some of Its Senior Executives, BlueCity Underwriters July 8, 2020 initial public offering (“IPO”), and others with violations of the Securities Act of 1933. Filed in the eastern district of new York at July 19, 2021 and subtitled Jiang v BlueCity Holdings Limited, n ° 21-cv-04044, the BlueCity The class action lawsuit aims to represent the buyers of BlueCity American Depository Shares (“ADS”) in accordance with and / or traceable to the offering documents published in connection with the BlueCity IPO.
If you have suffered substantial losses and wish to be the primary claimant of the BlueCity class action, please fill in your information by clicking here. You can also contact the lawyer JCSanchez from Robbins Geller by calling 800 / 449-4900 or emailing [email protected]. The principal applicant’s requests for the BlueCity the class action must be filed with the court at the latest September 17, 2021.
CASE ALLEGATIONS: The BlueCity The class action alleges that BlueCity’s offer documents were false or misleading and / or did not disclose that: (i) the defendants overestimated BlueCity’s business and financial prospects; (ii) BlueCity was ill-equipped to absorb the costs of becoming a publicly traded company, including costs associated with IPO and growth; (iii) as a result, the defendants had distorted BlueCity’s capacity for sustainable growth; and (iv) as a result, the offer documents were materially false or misleading and / or did not indicate the information to be included therein.
At December 2, 2020, BlueCity issued a press release announcing its unaudited financial and operating results for the third quarter of fiscal 2020. BlueCity’s press release stated, among other results, that its cost of revenues increased by 41 , 3% year-on-year, sales and marketing expenses were up 86.3% year-on-year, technology and development expenses were up 49.5% year-on-year, and General and administrative expenses were up 4,349% year-on-year. BlueCity attributed its increased costs to, among other things, growing revenue sharing costs, expenses related to its IPO, and increased advertising and promotion expenses and personnel costs. On this news, BlueCity’s ADS price has dropped nearly 23%.
Then on March 23, 2021, BlueCity published a press release announcing its results for the fourth quarter of fiscal 2020. Among other results, BlueCity announced a turnover of $ 42.7 million, the missing consensus estimates by $ 3.92 million. BlueCity also reported that its cost of revenue increased 29% year-over-year, sales and marketing expenses increased 56.7% year-over-year, technology expenses and development increased 9% year-over-year, and general and administrative expenses increased 345.5% year-on-year. BlueCity attributed these increased costs to, among other things, growing costs of revenue sharing and live streaming services, increasing advertising and promotion spending and staff costs, increasing costs. technology and development personnel, share-based compensation expenses and increased professional expenses. fees and staff costs. On this news, BlueCity’s ADS price fell a further 26%, further hurting investors.
THE MAIN COMPLAINANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who has purchased BlueCity ADSs in accordance with and / or traceable to the offering documents published in connection with the BlueCity IPO to apply for an appointment as lead applicant in the BlueCity class action lawsuit. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class which is also typical and adequate of the putative class. A lead applicant acts on behalf of all other class members by ordering BlueCity class action lawsuit. The lead plaintiff can choose a law firm of their choice to argue the case. BlueCity class action lawsuit. The ability of an investor to participate in any potential future recovery of the BlueCity the class action does not depend on the function of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller lawyers have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $ 7.2 billion – in In re Enron Corp. Dry. Litigation. 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller # 1 for recovery $ 1.6 billion for investors last year, more than double the amount recovered by any other company from securities claimants. Please visit https://www.rgrdlaw.com/firm.html for more information.
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Robbins Geller Rudman & Dowd LLP
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JC Sanchez, 800-449-4900
SOURCE Robbins Geller Rudman & Dowd LLP