Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Home Point, James River, Kanzhun, and BlueCity and Encourages Investors to Contact the Firm
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NEW YORK, July 28, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Home Point Capital, Inc. (NASDAQ: HMPT), James River Holdings, Ltd. (NASDAQ: JRVR), Kanzhun Limited (NASDAQ: BZ), and BlueCity Holdings Limited (NASDAQ: BLCT). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Home Point Capital, Inc. (NASDAQ: HMPT)
Class Period: January 29, 2021 IPO
Lead Plaintiff Deadline: August 20, 2021
On January 29, 2021, Home Point Capital launched its IPO, issuing 7.25 million shares of Home Point Capital’s common stock to the public at the offering price of $13.00 per share. Net proceeds of the offering were approximately $88 million.
On May 6, 2021, Home Point Capital issued a press release announcing Home Point Capital’s financial results for the first quarter of 2021. Among other results, Home Point Capital reported revenue of $324.2 million, missing consensus estimates by $41.72 million. On this news, Home Point Capital’s stock price fell nearly 18%, closing at $7.70 per share.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Home Point's aggressive expansion of its broker partners would dramatically increase Home Point's expenses; (2) the mortgage industry was anticipating industry-wide decreased gain-on-sale margins as a result of rising interest rates in 2021 and Home Point would be subject to the same competitive pressures; (3) accordingly, Home Point had overstated its business and financial prospects; and (4) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Home Point class action go to: https://bespc.com/cases/HMPT
James River Holdings, Ltd. (NASDAQ: JRVR)
Class Period: August 1, 2019 and May 5, 2021
Lead Plaintiff Deadline: September 7, 2021
On October 8, 2019, after the market closed, James River disclosed that it had delivered a notice of early cancellation of all policies issued to its largest customer, Rasier LLC.
On this news, the Company’s share price fell $11.06, or over 23%, to close at $37.88 per share on October 9, 2019, thereby injuring investors.
Then, on May 5, 2021, James River announced its first quarter 2021 financial results, reporting "$170.0 million of unfavorable development in Commercial Auto, primarily driven by a previously canceled account that has been in runoff since 2019." According to Bloomberg, the Company announced that it was seeking to raise $175 million through public equity offering, which was priced at "the sector’s steepest discount ever."
On this news, the Company’s share price fell $12.27, or 26%, to close at $34.23 per share on May 6, 2021, thereby injuring investors further.
The complaint filed alleges that throughout the Class Period, 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) James River had not adequately reserved for its Uber policies; (2) James River was using an incorrect methodology for setting reserves that materially understated the Company’s true exposure to Uber claims; (3) as a result, James River was forced to increase its unfavorable reserves in subsequent quarters even after cancelling the Uber policies; 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.
For more information on the James River class action go to: https://bespc.com/cases/JRVR
Kanzhun Limited (NASDAQ: BZ)
Class Period: June 11, 2021 and July 2, 2021
Lead Plaintiff Deadline: September 10, 2021
On July 5, 2021, Kanzhun announced that the Company was subject to a review by the Cyberspace Administration of China (“CAC”) and that, during the review period, Kanzhun’s “‘BOSS Zhipin’ app is required to suspend new user registration in China.”
On this news, the Company’s ADS price fell $5.79 per ADS, or 15%, to close at $30.52 per ADS on July 6, 2021, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, 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) Kanzhun would face an imminent cybersecurity review by the Cyberspace Administration of China (the “CAC”); (2) the CAC would require Kanzhun to suspend new user registration on its BOSS Zhipin app; (3) Kanzhun needed to conduct a comprehensive examination of cybersecurity risks; (4) Kanzhun needed to enhance its cybersecurity awareness and technology capabilities; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Kanzhun class action go to: https://bespc.com/cases/BZ
BlueCity Holdings Limited (NASDAQ: BLCT)
Class Period: July 8, 2021 IPO
Lead Plaintiff Deadline: September 17, 2021
On December 2, 2020, BlueCity issues a press release announcing financial and operating results for the third quarter and fiscal year 2020. The press release reported, among other results, that the Company's cost of revenues had increased 41.4% year-over-year, selling and marketing expenses had increased 86.3% year-over-year, technology and development expenses had increased 49.5% year-over-year, and general and administrative expenses had increased 4,349% year-over-year.
On this news, BlueCity’s American Depositary Share (“ADS”) price fell $3.30 per ADS, or 22.84%, to close at $11.15 per ADS on December 2, 2020.
Then on March 23, 2021, BlueCity issued a press release announcing its results for the fourth quarter of 2020. Among other results, BlueCity announced revenue of $42.7 million, missing consensus estimates by $3.92 million.
On this news, BlueCity’s ADS price fell $3.25 per ADS, or 26.71%, over the following two trading sessions, to close at $8.92 per ADS on March 24, 2021.
The complaint alleges that the Company’s offering documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted other facts necessary to make the statements made not misleading. Specifically, the offering documents were false or misleading and/or failed to disclose that: (1) defendants had overstated BlueCity’s business and financial prospects; (2) the Company was ill-equipped to absorb the costs of becoming a publicly traded company, including IPO- and growth-related costs; (3) as a result of the foregoing, defendants had misrepresented the Company’s capability for sustainable growth; and (4) as a result, the offering documents were materially false or misleading and/or failed to state information required to be stated therein.
For more information on the BlueCity class action go to: https://bespc.com/cases/BLCT
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.
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