PR Newswire | Feb 10, 2021 11:15AM EST

Action on Behalf of Lizhi, Inc. (LIZI) Investors

02/10 10:15 CST

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Lizhi, Inc. (LIZI) Investors LOS ANGELES, Feb. 10, 2021

LOS ANGELES, Feb. 10, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Lizhi Inc. ("Lizhi" or the "Company") (NASDAQ: LIZI) American Depositary Shares ("ADSs" or "shares") pursuant and/or traceable to the Company's January 2020 initial public offering ("IPO" of the "Offering"). Lizhi investors have until March 22, 2021 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In January, 2020, Lizhi conducted its IPO, issuing 4.1 million ADSs priced at $11.00 per ADS.

On April 20, 2020, Lizhi admitted that before the IPO, as early as "late 2019," the COVID-19 pandemic was already negatively impacting its business.

Since the IPO, Lizhi shares are trading below $4 per share, or 63% below the IPO price.

The complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Lizhi securities during the Class Period, you may move the Court no later than March 22, 2021to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Lizhi securities, have information or 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE The Law Offices of Frank R. Cruz, Los Angeles