An investigation on behalf of investors of Lizhi Inc. (NASDAQ: LIZI) shares over potential securities laws violations by Lizhi Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Lizhi Inc. (NASDAQ: LIZI) concerning whether a series of statements by Lizhi Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

China based Lizhi Inc. operates an online user-generated content audio community, interactive audio entertainment platform, and online audio platform in China. Lizhi Inc. reported that its annual Total Revenue rose from 798.56 million CNY in 2018 to over 1.18 billion CNY in 2019.

On or about January 17, 2020, Lizhi Inc. sold about 11 million shares of stock in its initial public stock offering (the 'IPO'), at $11.00 a share raising nearly $45.1 million in new capital. However, since the IPO, Lizhi Inc. stock has plummeted to as low as $3.40 per share on September 14, 2020.