Case View

BLUECITY HOLDINGS LIMITED SHAREHOLDERS HAVE AN OPPORTUNTIY TO RECOVER THEIR INVESTMENT LOSSES

BlueCity Holdings Limited

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquried the securities of BlueCity Holdings Limited (“BlueCity” or the “Company”) (NASDAQ: BLCT) between July 5, 2020 and July 19, 2021 (the “Class Period”). The lawsuit seeks to recover BlueCity shareholders’ investment losses.

If you purchased shares of BlueCity between July 5, 2020 and July 19, 2021 and would like to discuss your legal rights and/or options, please click “Join Class Action” above. 

New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of BlueCity Holdings Limited (“BlueCity” or the “Company”) (NASDAQ: BLCT) from July 5, 2020 through July 19, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Eastern District of New York alleges violations of the Securities Act of 1933.

The 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: (1) defendants had overstated BlueCity’s business and financial prospects; (2) the Company was ill-equipped to absorb the costs of becoming a publicly traded company, including IPO- and growth-related costs; (3) as a result of the foregoing, defendants had misrepresented the Company’s capability for sustainable growth; and (4) 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 issues 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 American Depositary Share (“ADS”) price 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 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 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.

If you wish to serve as lead plaintiff, you must move the Court no later than September 17, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.

ATTORNEY ADVERTISING. © 2021 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information

Noah Wiesner
Bernstein Liebhard LLP

(877) 779-1414
Nwiesner@bernlieb.com