Press release content from Globe Newswire. The AP news staff was not involved in its creation.
LEAD PLAINTIFF DEADLINE IS SEPTEMBER 17, 2021
NEW YORK, July 21, 2021 (GLOBE NEWSWIRE) — Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors who purchased or acquired the American Depositary Receipts (“ADRs”) of BlueCity Holdings Limited (“BlueCity” or the “Company”) (NASDAQ: BLCT) pursuant and/or traceable to BlueCity’s July 8, 2020 initial public offering (the “IPO” or the “Offering”).
All investors who purchased the ADRs of BlueCity Holdings Limited and incurred losses are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the ADRs of pursuant and/or traceable to BlueCity’s July 8, 2020 IPO, you may, no later than September 17, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the ADRs of BlueCity Holdings Limited.
The filed complaint alleges that the Company’s offering documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted other facts necessary to make the statements made not misleading. Specifically, the offering documents were false or misleading and/or failed to disclose that:
- defendants had overstated BlueCity’s business and financial prospects;
- the Company was ill-equipped to absorb the costs of becoming a publicly traded company, including IPO- and growth-related costs;
- as result of the foregoing, defendants had misrepresented the Company’s capability for sustainable growth; and
- as a result, the offering documents were materially false or misleading and/or failed to state information required to be stated therein.
On December 2, 2020, BlueCity issued a press release announcing financial and operating results for the third quarter and fiscal year 2020. The press release reported, among other results, that the Company’s cost of revenues had increased 41.4% year-over-year, selling and marketing expenses had increased
86.3% year-over-year, technology and development expenses had increased 49.5% year-over-year, and general and administrative expenses had increased 4,349% year-over-year.
On this news, BlueCity’s ADR price fell $3.30 per ADR, or 22.84%, to close at $11.15 per ADR on December 2, 2020.
Then on March 23, 2021, BlueCity issued a press release announcing its results for the fourth quarter of 2020. Among other results, BlueCity announced revenue of $42.7 million, missing consensus estimates by $3.92 million.
On this news, BlueCity’s ADR price fell $3.25 per ADR, or 26.71%, over the following two trading sessions, to close at $8.92 per ADR on March 24, 2021.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.