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Investors with Substantial Losses Have the Option to Bring BlueCity Holdings Limited Class Action

By on August 28, 2021 0

San Diego, CA – (Newsfile Corp. – August 28, 2021) – Robbins Geller Rudman & Dowd LLP announces that buyers of US depository shares of BlueCity Holdings Limited (NASDAQ: BLCT) (“ADS”) in accordance with and / or traceable to the offering documents issued in connection with the initial public offering (“IPO”) of BlueCity from July 8, 2020 have until September 17, 2021 to apply for appointment as lead applicant in the BlueCity class action lawsuit. The BlueCity class action (Jiang v BlueCity Holdings Limited, n ° 21-cv-04044) accuses BlueCity, some of its senior executives, the IPO underwriters and others of violations of the Securities Act of 1933. BlueCity The class action lawsuit was filed on July 19, 2021 in the Eastern District of New York.

If you have suffered substantial losses and wish to be the primary claimant of the BlueCity class action, please enter 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 no later than 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.

On 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 reported, among other results, that its cost of revenues had increased by 41.3% year over year. , Selling and marketing expense increased 86.3% year-on-year, technology and development expense increased 49.5% year-over-year, and general and administrative expense increased 4,349% year-on-year. annual. 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 by almost 23%.

Then, on March 23, 2021, BlueCity issued a press release announcing its results for the fourth quarter of fiscal 2020. Among other results, BlueCity reported revenue of $ 42.7 million, missing from 3 , $ 92 million consensus estimates. 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. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller # 1 for recovering $ 1.6 billion from 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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Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
JC Sanchez, 800-449-4900
[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94681


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