An investigation on behalf of investors of BlueCity Holdings Limited (NASDAQ: BLCT) shares over potential securities laws violations by BlueCity Holdings Limited and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of BlueCity Holdings Limited (NASDAQ: BLCT) concerning whether a series of statements by BlueCity Holdings Limited regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
China based BlueCity Holdings Limited operates a platform for LGBTQ community primarily under BlueCity brand in China, India, Korea, Thailand, and Vietnam.
On or around July 8, 2020, BlueCity Holdings Limited conducted its initial public offering, issuing 5,300,000 American Depositary Shares ("ADSs") priced at $16.00 per ADS.
Then, on March 23, 2021, BlueCity Holdings Limited 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. BlueCity Holdings Limited reported that its annual Total Revenue rose from $758.88 million in 2019 to over $1.03 billion in 2020, and that its Net Loss increased from $52.93 million in 2019 to $226.67 million in 2020. Shares of BlueCity Holdings Limited (NASDAQ: BLCT) declined from $12.90 per share on March 16, 2021 to as low as $8.05 per share.