NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors that purchased Lizhi, Inc. (NASDAQ: LIZI) American Depositary Shares (“ADSs”) pursuant and/or traceable to the Company’s initial public offering conducted on or about January 17, 2020 (the “IPO” or “Offering”). Investors have until March 22, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On or about January 17, 2020 the company conducted its IPO, selling 4.1 million Lizhi ADSs at $11.00 per ADS. Defendants generated approximately $45 million in gross offering proceeds from their sale of Lizhi’s securities in the IPO.
By the commencement of this action, Lizhi shares are trading below $4 per share, a decline of over 63% from the offering price.
The complaint, filed on January 20, 2021, alleges that the registration statement for the IPO contained false and/or misleading statements and/or failed to disclose that: (1) at the time of the IPO, the coronavirus was already ravaging China, the home base, principal market, and significant hub for Lizhi, its employees, and its customers; (2) the complications associated with the coronavirus were already negatively affecting Lizhi’s business, as employees and customers contracted the virus, lost employment, or otherwise experienced difficulty in generating, publishing, and monetizing the content critical to Lizhi’s platform; (3) even prior to the IPO, Lizhi employees and customers complained of, and to, Lizhi, which harmed the Company’s reputation and financial condition and prospects; and (4) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
If you purchased Lizhi ADSs pursuant and/or traceable to the IPO and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
