Law Offices of Howard G. Smith reminds investors of the upcoming September 17, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased BlueCity Holdings Limited American Depositary Shares (“ADSs”) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s initial public offering conducted on or about July 8, 2020 (the “IPO” or the “Offering”).
Investors suffering losses on their BlueCity investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On December 2, 2020, BlueCity reported its third quarter and fiscal year 2020 results, disclosing, 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, the Company’s American Depositary Share (“ADS”) price fell $3.30 per ADS, or 22.84%, to close at $11.15 per ADS on December 2, 2020, thereby injuring investors.
Then on March 23, 2021, BlueCity reported its results for the fourth quarter of 2020, disclosing, among other results, revenue of $42.7 million, missing consensus estimates by $3.92 million.
On this news, BlueCity’s ADS price fell $3.25 per ADS, or 26.71%, over the following two trading sessions, to close at $8.92 per ADS on March 24, 2021, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) defendants had overstated BlueCity’s business and financial prospects; (2) BlueCity was ill-equipped to absorb the costs of becoming a publicly traded company, including IPO- and growth-related costs; (3) as a result of all the foregoing, defendants had misrepresented BlueCity’s capability for sustainable growth; and (4) as a result, the Registration Statement was materially false or misleading and failed to state information required to be stated therein.
If you purchased or otherwise acquired BlueCity ADSs pursuant and/or traceable to the IPO, you may move the Court no later than September 17, 2021 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.