Sumary of BLCT ALERT: Robbins Geller Rudman & Dowd LLP Announces that Investors With Substantial Losses Have Opportunity to Lead the BlueCity Holdings Limited C…:
- BlueCity Holdings Limited, No. 21-cv-04044) was commenced on July 19, 2021 in the Eastern District of New York and is assigned to Judge Frederic Block.
- If you suffered substantial losses and wish to serve as lead plaintiff of the BlueCity class action lawsuit, please provide your information by clicking here.
- Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.
- (ii) BlueCity was ill-equipped to absorb the costs of becoming a publicly traded company, including IPO- and growth-related costs;
- (iii) consequently, defendants had misrepresented BlueCity’s capability for sustainable growth;
- BlueCity attributed its increased costs to, among other things, the growth of revenue-sharing costs, expenses related to its IPO, and increased advertising and promotion expenses and staff costs.
- Story continuesThen, on March 23, 2021, BlueCity issued a press release announcing its results for the fourth quarter of fiscal year 2020. Among other results, BlueCity announced revenue of $42.7 million, missing consensus estimates by $3.92 million.
- BlueCity also reported that its cost of revenues had increased 29% year-over-year, selling and marketing expenses increased 56.7% year-over-year, technology and development expenses increased 9% year-over-year, and general and administrative expenses had increased 345.5% year-over-year.