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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Lizhi, Bit Digital, CleanSpark, and 9F, Inc. and Encourages Investors to Contact the Firm

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Bragar Eagel & Squire
·6 min read
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NEW YORK, Feb. 17, 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 Lizhi, Inc. (NASDAQ: LIZI), Bit Digital, Inc. (NASDAQ: BTBT), CleanSpark, Inc. (NASDAQ: CLSK), and 9F, Inc. (NASDAQ: JFU). 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.

Lizhi, Inc. (NASDAQ: LIZI)

Class Period: American Depositary Shares (“ADSs”) purchased pursuant and/or traceable to the Company’s initial public offering conducted on or about January 17, 2020 (the “IPO” or “Offering”)

Lead Plaintiff Deadline: March 22, 2021

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.

For more information on the Lizhi class action go to: https://bespc.com/cases/LIZI

Bit Digital, Inc. (NASDAQ: BTBT)

Class Period: December 21, 2020 to January 8, 2021

Lead Plaintiff Deadline: March 22, 2021

Bit Digital is a holding company that purports to engage in the bitcoin mining business through its wholly owned subsidiaries in U.S. and Hong Kong.

On January 11, 2021, J Capital Research issued a research report alleging, among other things, that Bit Digital operates “a fake crypto currency business” “designed to steal funds from investors.” Though the Company claims “it was operating 22,869 bitcoin miners in China,” J Capital alleged that “is simply not possible” and stated that “[w]e verified with local governments supposedly hosting the BTBT mining operation that there are no bitcoin miners there.”

On this news, Bit Digital’s stock price fell $6.27 per share, or 25%, to close at $18.76 per share on January 11, 2021.

The complaint, filed on January 20, 2021, 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: (1) that Bit Digital overstated the extent of its a bitcoin mining operation; and (2) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the Bit Digital class action go to: https://bespc.com/cases/BTBT

CleanSpark, Inc. (NASDAQ: CLSK)

Class Period: December 31, 2020 to January 14, 2021

Lead Plaintiff Deadline: March 22, 2021

CleanSpark provides advanced software and controls technology solutions, including end-to-end microgrid energy modeling, energy market communications, and energy management solutions.

On January 14, 2021, Culper Research published a report alleging, among other things, that CleanSpark has “fabricated key elements of its business, including purported customers and contracts” and that it is “rife with undisclosed related party transactions.”

On this news, the Company’s share price fell $3.63, or 9%, to close at $35.71 per share on January 14, 2021, thereby damaging investors. The stock continued to decline the next trading session by $4.56, or 13%, to close at $31.15 per share on January 15, 2021.

The complaint, filed on January 20, 2021, 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: (1) that the Company had overstated its customer and contract figures; (2) that several of the Company’s recent acquisitions involved undisclosed related party transactions; and (3) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the CleanSpark class action go to: https://bespc.com/cases/CLSK

9F, Inc. (NASDAQ: JFU)

Class Period: Securities purchased pursuant and/or traceable to the Company’s initial public offering conducted on or about August 14, 2019 (the “IPO” or “Offering”); or between August 14, 2019 and September 29, 2020 (the “Class Period”)

Lead Plaintiff Deadline: March 22, 2021

In August 2019, defendants held the IPO, selling approximately 8.9 million American depositary shares (“ADSs”) to the investing public at $9.50 per ADS, pursuant to the Registration Statement

By the commencement of this action, the Company’s shares trade significantly below the IPO price.

The complaint, filed on January 20, 2021, alleges that the materials supporting the Offering, and defendants throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) the purported value and benefits of the Company’s financial institution partners and its tri-party cooperation business model did not in fact exist and/or were materially overstated, given that 9F and Property and Casualty Company Limited (“PICC”) had been engaged in an ongoing contractual dispute regarding payment of service fees under the Cooperation Agreement; (2) the collectability of service fees owed to 9F by PICC under the Cooperation Agreement was in doubt and at serious risk of non-payment; (3) there was a significant risk that PICC would no longer provide credit insurance and guarantee protection to investors and institutional funding partners; (4) as a result of the foregoing, the Company’s platform, business model, reputation and financial results had been materially impaired; and (5) as a result, defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

For more information on the 9F class action go to: https://bespc.com/cases/JFU

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.

Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com