BLUECITY ALERT: Investors With Substantial Losses Have Opportunity to Lead the BlueCity Holdings Limited Class Action Lawsuit – BLCT
SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that BlueCity Holdings Limited (NASDAQ: BLCT) has bought American Depositary Shares (“ADSs”) as set out in the offer documents issued in connection with BlueCity’s IPO on July 8, 2020 , and / or attributable to them (“IPO”) have until September 17, 2021 to file for lead plaintiff in the BlueCity class action. The BlueCity Holdings Limited class lawsuit charges BlueCity, some of its top executives, the underwriters of BlueCity’s initial public offering, and others for violating the Securities Act of 1933. The BlueCity class action (Jiang v. BlueCity Holdings Limited, No. 21-cv- 04044) was commenced in the Eastern District of New York on July 19, 2021 and is assigned to Judge Frederic Block.
If you have suffered significant losses and wish to be the lead plaintiff in the BlueCity class action, please provide your information by clicking here. You can also contact Attorney JC Sanchez of Robbins Geller by phone at 800 / 449-4900 or by email at email@example.com. Lead plaintiffs’ motions for the BlueCity class action must be filed in court by September 17, 2021.
ALLEGATION: The BlueCity class action alleges that BlueCity’s offer documents were false, misleading and / or failed to disclose that: (i) the defendants overestimated BlueCity’s business and financial prospects; (ii) BlueCity was ill-equipped to bear the costs of transitioning to a publicly traded company, including the costs of IPOs and growth; (iii) as a result, Defendants misrepresented BlueCity’s ability to achieve sustainable growth; and (iv) as a result, the Offer Documents were materially false or misleading and / or did not contain any information to be disclosed therein.
On December 2, 2020, BlueCity issued a press release announcing its unaudited financial and operating results for the third quarter of fiscal 2020. The BlueCity press release reported, among other things, that the cost of sales increased by 41.3% year-on-year, sales and marketing costs were up 86.3% year-on-year, and technology and development costs were up 49 year-on-year .5% and general and administrative expenses were up 4,349% year over year. BlueCity attributed its increased costs to, among other things, growth in revenue sharing costs, IPO expenses, and increased advertising and promotional expenses, as well as staff costs. Because of this news, BlueCity’s ADS price fell nearly 23%.
Then, on March 23, 2021, BlueCity published a press release announcing the results for the fourth quarter of fiscal 2020. Among other things, BlueCity announced sales of $ 42.7 million and missed consensus estimates by $ 3.92 million. BlueCity also reported that its cost of sales increased 29% year over year, sales and marketing expenses increased 56.7% year over year, technology and development expenses increased 9% year over year, and general and administrative expenses increased have increased by 345.5% compared to the previous year. BlueCity attributed these increased costs to growth in revenue sharing costs and live streaming services, increased advertising and promotional and staffing costs, increased technology and development personnel costs, stock-based compensation expenses, and increased professional fees and personnel costs, among other things. Because of this news, BlueCity’s ADS price fell another 26%, which continued to hurt investors.
THE LEAD APPLICANT TRIAL: The Private Securities Litigation Reform Act of 1995 allows any investor who has acquired and / or is traceable to BlueCity ADSs under and / or attributable to the offering documents issued in connection with BlueCity’s initial public offering to be appointed as the lead plaintiff in the BlueCity- To file a class action lawsuit. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in leading the BlueCity class action. The lead plaintiff can choose a law firm of their choice to bring the BlueCity class action lawsuit. An investor’s ability to participate in a possible future recovery of the BlueCity class action lawsuit does not depend on being the lead 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 serving investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder recoveries in history, including the largest securities class action of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for getting $ 1.6 billion back for investors last year, more than double the amount paid by any other securities plaintiff firm was drafted. Please visit https://www.rgrdlaw.com/firm.html for more information.