Shareholder Alert: Robbins LLP Announces That Lizhi Inc. (LIZI) is Being Sued for Misleading Shareholders

SAN DIEGO & GUANGZHOU, China--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Lizhi Inc.'s (NASDAQ:LIZI) American Depository Shares filed a class action complaint against the Company and its officers and directors for alleged violation of the Securities Act of 1933 in connection with the Company's January 17, 2020 initial public offering ("IPO"). Lizhi operates an online user-generated content and audio community, interactive audio entertainment platform, and online audio platform in China.

If you suffered a loss due to Lizhi Inc.'s misconduct, click here.

Lizhi Inc. (LIZI) Misled Shareholders Regarding the Impact of the Coronavirus on its Financial Condition and Prospects

According to the complaint, Lizhi sold more than 4.1 million American Depository Shares at $11.00 per share generating approximately $45 million in proceeds. However, the documents used to facilitate Lizhi's IPO were negligently prepared and contained untrue statements of material facts. Specifically, the documents failed to disclose Lizhi's direct and escalating exposure to the coronavirus pandemic. At the time of the IPO, the coronavirus was already ravaging China, Lizhi's home base, principal market, and significant hub for its employees and customers. Thus, the effects of the coronavirus were already negatively impacting Lizhi's business, as employees and customers contracted the virus, lost employment and had difficulty generating, publishing, and monetizing the content critical to Lizhi's platform. On March 12, 2020, defendants filed a Form 6-K report, admitting the impact of the pandemic on Lizhi. Then, on April 20, 2020, in a Form 20-F annual report with the SEC, defendants admitted that as early as "late 2019" the pandemic was negatively affecting its business. At the time of the filing of the class action, Lizhi shares were trading below $4 per share, a decline of over 63% from the offering price.

If you purchased American Depository Shares of Lizhi Inc. (LIZI) pursuant to its January 17, 2020 IPO, you have until March 22, 2021, to ask the court to appoint you lead plaintiff for the class.

Contact us to learn more:
Lauren Levi
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