NEW YORK, NY / ACCESSWIRE / February 13, 2021 / Pomerantz LLP is investigating claims on behalf of investors of Lizhi Inc. ("Lizhi" or the "Company") (NASDAQ:LIZI). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Lizhi and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On or around January 17, 2020, Lizhi conducted its initial public offering ("IPO"), selling more than $4.1 million American depositary shares ("ADSs") priced at $11.00 per ADS. On March 12, 2020, Lizhi filed a report on Form 6-K with the U.S. Securities and Exchange Commission ("SEC"), admitting that the Company had already been impacted by the COVID-19 pandemic, stating, in relevant part, that the "COVID-19 outbreak has caused, and may continue to cause, companies in China, including [Lizhi], to implement temporary adjustment of work schemes allowing employees to work from home" and that "[t]he extent to which COVID-19 impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain or treat its impact, among others." Two months later, on April 20, 2020, in its Annual Report filed with the SEC, Lizhi further admitted that even before the IPO, indeed as early as "late 2019," the COVID-19 pandemic was already negatively impacting its business.
Since the IPO, Lizhi's ADSs have traded as low as $1.96 per ADS, representing a decline of more than 82% from the offering price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP