NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against BlueCity Holdings Limited (NASDAQ: BLCT) (“BlueCity” or “the Company”), certain of its officers and directors, the underwriters of BlueCity’s July 2020 initial public offering (“IPO”), and its U.S. representatives, alleging violations of the Securities Act of 1933. If you purchased or otherwise own BlueCity American Depository Shares (ADSs), and have suffered a loss, you are encouraged to contact attorney Jonathan Zimmerman for additional information at (888) 398-9312 or jzimmerman@scott-scott.com.
BlueCity operates a platform for the LGBTQ community primarily under the BlueCity brand in China, India, Korea, Thailand, and Vietnam.
On July 8, 2020, BlueCity conducted its IPO, issuing 5.3 million ADSs to the public at $16 per ADS (the “Offering Price”), for approximate proceeds of $78.86 million.
According to the complaint, the offering documents used to effectuate BlueCity’s IPO were false and misleading and/or failed to disclose that BlueCity’s business and financial prospects were overstated, BlueCity was ill-equipped to absorb the costs of becoming a publicly traded company, and BlueCity misrepresented its capability for sustainable growth.
On December 2, 2020, BlueCity announced its unaudited financial and operating results for the third quarter of the Company’s fiscal year 2020, reporting, among other things, that the Company’s cost of revenues had increased 41.3% 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 ADS price fell $3.30 per ADS, or 22.84%.
Then, on March 23, 2021, BlueCity issued a press release announcing its financial results for the fourth quarter of 2020, reporting additional increases, leading BlueCity’s ADS price to fall $3.25 per ADS, or 26.71% over the following two trading sessions.
What You Can Do
If you purchased or otherwise own BlueCity ADSs and have suffered a loss, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or jzimmerman@scott-scott.com. The lead plaintiff deadline is September 17, 2021.
About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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