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Investigation
07/19/2021
Initial Lawsuit
07/19/2021
Lawsuit Progression
12/22/2021
This is a federal securities class action on behalf of all persons and entities, other than Defendants, who purchased or otherwise acquired BlueCity American Depositary Shares pursuant and/or traceable to the Offering Documents issued in connection with the Company’s initial public offering conducted on or about July 8, 2020.
According to the complaint, 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 allegedly failed to disclose to investors 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 all the foregoing, Defendants had misrepresented the Company’s capability for sustainable growth;
(4) as a result, the Offering Documents were materially false or misleading and/or failed to state information required to be stated therein.
