Lowey Dannenberg, PC, investigates claims on behalf of investors of Ebang International Holdings Inc. (EBON) and encourages investors with losses over $ 200,000 to contact the company
NEW YORK, May 12, 2021 (GLOBE NEWSWIRE) – Lowey Dannenberg PC, a leading law firm in obtaining redress for consumers and investors, is investigating allegations of violations of federal securities laws in Names of Investors in Ebang International Holdings Inc. (“Ebang” or the “Company”) (NASDAQ: EBON). If you are a shareholder of Ebang with more than $ 200,000 in losses, you should contact the firm.
On April 6, 2021, before the market opened, Hindenburg Research released a report alleging, among other things, that Ebang was channeling the proceeds of its IPO last year into a “series of dark deals with insiders and dubious counterparts ”. According to the report, Ebang raised $ 21 million in November 2020, claiming the proceeds would go “primarily to development,” and that instead the funds were intended to repay loans to parties related to a relative of the Ebang CEO 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 lending platform in China. Chinese peer-to-peer line that defrauded 20,000 retail investors in 2018, with $ 655 million “disappear[ing] in the air.
On this news, Ebang’s stock price fell about 13%.
Later that day after the market closed, Ebang released a statement saying that while she believed the report “contained[ed] numerous errors, unsubstantiated speculation and inaccurate interpretations of events ”, the“ Board, together with its audit committee, intends to further review and examine the allegations and misinformation contained therein and will take all necessary and appropriate measures that may be necessary to protect the interests of its shareholders. “
At this news, Ebang’s share price fell a further 2%, further damaging investors.
The Ebang Class Action alleges that, throughout the Class Action Period, the Defendants made false and / or misleading representations and / or failed to disclose that: (i) the proceeds of Ebang’s public offerings had been directed to related parties rather than used to develop Ebang. operations; (ii) Ebang’s sales were down and Ebang had inflated reported sales, notably through the sale of defective units; (iii) Ebang’s attempts to go public in Hong Kong failed due to allegations of embezzlement of investor funds and inflated sales figures; (iv) Ebang’s purported cryptocurrency exchange was simply the purchase of a ready-made crypto exchange; and (v) therefore, the defendants’ positive statements about Ebang’s business, operations and prospects were materially misleading and / or lacking reasonable basis.
If you are an Ebang shareholder who purchased Ebang securities between June 26, 2020 and April 5, 2021 inclusive, you have until June 7, 2021 to ask the court to appoint you as the main plaintiff for the group. To participate, learn more or discuss issues surrounding the investigation, please contact our lawyers at (914) 733-7256 or by email at [email protected].
Whistleblowers: People with non-public information about Ebang should consider their options to help with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30% of any successful collections made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a nationwide firm representing institutional and individual investors who have suffered financial losses resulting from fraud and embezzlement in violation of federal securities and antitrust laws. The company has significant experience in pursuing multi-million dollar lawsuits and has already collected billions of dollars on behalf of investors.
Lowey Dannenberg PC
44 South Broadway, Suite 1100
White Plains, NY 10601
Phone: (914) 733-7256
E-mail: [email protected]