BLUECITY ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against BlueCity Holdings Limited and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern Borough of New York on behalf of investors who bought or otherwise acquired BlueCity Holdings Limited (“BlueCity” or the “Company”) (NASDAQ: BLCT) securities pursuant to and / or traceable to the offering documents issued in connection with BlueCity’s initial public offering on July 8, 2021 (the “IPO”). Investors have until September 17, 2021 to apply to the court for appointment as lead plaintiff in the litigation.
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On December 2, 2020, BlueCity will issue a press release announcing its financial and operating results for the third quarter and fiscal year 2020. The press release reported, among other things, that the company’s cost of sales increased 41.4% year over year. Selling and marketing expenses were up 86.3% yoy, technology and development expenses were up 49.5% yoy, and general and administrative expenses were up 4.349% yoy.
In light of the news, BlueCity’s American Depositary Share (“ADS”) fell $ 3.30 per ADS, or 22.84%, to close at $ 11.15 per ADS on December 2, 2020.
Then on March 23, 2021, BlueCity published a press release announcing the results for the fourth quarter of 2020. Among other things, BlueCity announced sales of $ 42.7 million, missing consensus estimates by $ 3.92 million.
According to this news, BlueCity’s ADS price fell by $ 3.25 per ADS, or 26.71%, in the following two trading sessions, closing at $ 8.92 per ADS on March 24, 2021.
The lawsuit alleges that the company’s offer documents were drawn up negligently and as a result contained untrue statements of material facts or omitted other facts that were necessary in order not to mislead the statements made. In particular, the offer documents were inaccurate or misleading and / or did not reveal that: (1) Defendants had overestimated BlueCity’s business and financial prospects; (2) the company was ill-equipped to bear the costs of converting to a publicly traded company, including IPO and growth costs; (3) Based on the foregoing, Defendants misrepresented the company’s ability to achieve sustainable growth; and (4) as a result, the Offer Document was materially false or misleading and / or did not contain any information that must be disclosed therein.
If you acquired and / or attributed to BlueCity shares in the IPO and suffered a loss, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at email@example.com, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagle & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents private and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.