CANAAN ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Canaan, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who bought Canaan, Inc. (NASDAQ: CAN) American Depositary Receipts (“ADRs”) between February 10, 2021 and April 9, 2021 (including the “Class Period”). Investors have until June 14, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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Canaan develops, manufactures and sells Bitcoin mining equipment primarily in the People’s Republic of China (“PRC”). It is organized under the laws of the Cayman Islands and is headquartered in Hangzhon, PRC. The ADRs are listed and traded on the NASDAQ Global Market.
On Monday, April 12, 2021, Canaan released a press release disclosing actual financial results for the 4th quarter of 20 and fiscal year 20 for the period ended December 31, 2020, including a decrease in computing power sold and net revenue for the fiscal year up 93% year over year quarter.
In that news, the market price for ADRs in Canaan slumped from $ 18.67 per ADR on April 9, 2021 to $ 13.14 per ADR on April 12, 2021, a decrease of nearly 30%.
The complaint, filed on April 15, 2021, alleges that the statements made during the Canaan’s teaching period about the company’s business metrics and financial prospects were materially false and misleading as they were hiding it due to ongoing supply chain disruptions and the company’s launch Next-generation A12-series bitcoin mining machines, which cannibalized sales of its older product offerings, were down more than 93% year-over-year in Canaan’s fourth quarter of 20, compared to sales for the fourth quarter of fiscal 2019 (“4Q19”) and more than 93% compared to the previous quarter compared to sales for the third quarter of fiscal year 20 (“3Q20”). As a result, Canaan’s net sales were from 463.2 million RMB in fourth quarter 19 to 163.2 million RMB and from 163.0 million RMB in third quarter 20 to 38.2 million RMB (5, $ 9 million).
If you have purchased ADRs from Canaan during the classroom and have suffered a loss, have information, want to learn more about these claims, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Email Melissa Fortunato or Marion Passmore at email@example.com, call (212) 355-4648, or fill out this contact form. There are no costs or obligations 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. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.