Bragar Eagel & Squire, PC Announces Class Action Lawsuit Has Been Filed Against Ebang International Holdings, Inc. and Encourages Investors to Contact Firm
Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in United States District Court for the Southern District of New York on behalf of investors who purchased Ebang International Holdings, Inc. (NASDAQ: EBON) between June 26, 2020 and April 5, 2021 inclusive (the “Recourse Period”). Investors have until June 7, 2021 to ask the court to be named lead plaintiffs in the lawsuit.
Click here to join the action.
On April 6, 2021, Hindenburg Research released a report alleging, among other things, that Ebang was directing the proceeds of its IPO last year into a “series of dark deals with insiders and dubious counterparties.” According to the report, Ebang raised $ 21 million in November 2020, saying the proceeds would go “mostly to development” and instead the funds were intended to repay loans between parties related to a relative of the CEO of ‘Ebang, Dong Hu. The report also noted that Ebang’s earlier efforts to go public on the Hong Kong Stock Exchange had failed due to widespread media coverage of a sales inflation program with Yindou, a Chinese lending platform. peer-to-peer online that defrauded 20,000 retail investors in 2018, with $ 655 million “disappearing[ing] in the air.”
Following this news, the Company’s share price fell $ 0.82, or approximately 13%, to close at $ 5.53 per share on April 6, 2021.
On April 6, 2021, after the market closed, Ebang released a statement stating that although he believes the report “contains[ed] number of errors, unsubstantiated speculation and inaccurate interpretations of events ”, the“ Board, together with its Audit Committee, intends to further investigate and review the allegations and misinformation that ‘it contains and will take all necessary and appropriate measures that may be required to protect the interests of its shareholders. “
Following this news, the company’s stock price fell $ 0.12, or 2.17%, to close at $ 5.41 per share on April 7, 2021. The stock price continued to drop over the next trading session by $ 0.38, or 7%, to close at $ 5.03 per share. share on April 8, 2021.
The complaint, filed on April 8, 2021, alleges that throughout the Class Period, the Defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and the outlook for the Company. Specifically, the defendants failed to disclose to investors: (1) that the proceeds from Ebang’s public offerings had been allocated to low yield, long-term bonds to an underwriter and related parties rather than being used to develop the operations of the company; (2) that Ebang’s sales were down and that the Company had inflated reported sales, in particular through the sale of defective units; (3) that Ebang’s attempts to go public in Hong Kong had failed due to allegations of embezzlement of investor funds and inflated sales figures; (4) that Ebang’s purported cryptocurrency exchange was simply the purchase of a ready-made crypto exchange; and (5) that as a result of the foregoing, the Defendants’ positive statements regarding the business, operations and prospects of the Company were materially misleading and / or lacked reasonable basis.
If you purchased any Ebang securities during the Class Period and suffered a loss, have any information, want to learn more about such claims, or have any questions regarding this announcement or your rights or interests in any such matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC 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, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Past results do not guarantee similar results.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210604005643/en/
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.