EBON CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against Ebang International Holdings, Inc.
THE ANGEL–(BUSINESS WIRE) – Frank R. Cruz law firms announce they have filed a class action lawsuit in the United States District Court for the Southern Borough of New York, titled Zaker v Ebang International Holdings Inc. et al. (Case # 1: 21-cv-03060) on behalf of any person or entity who between June 26, 2020 and April 5, 2020, has acquired securities of Ebang International Holdings, Inc. (“Ebang” or the “Company”) (NASDAQ : EBON) purchased or otherwise obtained in 2021, inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days after such notification to appoint the court as the lead plaintiff in this lawsuit.
If you are a shareholder who has suffered a loss, click here to participate.
On April 6, 2021, before the market opened, Hindenburg Research released a report claiming, among other things, that Ebang poured the proceeds from its IPO into a “series of opaque deals with insiders and questionable counterparties.” According to the report, Ebang raised $ 21 million in November 2020, claiming the proceeds would be “mostly used for development.” Instead, the funds were used to repay related party loans to a relative of Ebang’s CEO, Dong Hu. The report also found that Ebang’s previous efforts to go public on the Hong Kong Stock Exchange had failed because of the media coverage of a sales inflation program with Yindou, a Chinese peer-to-peer online lending platform that raised 20,000 in 2018 Private investors were cheated, it was reported. with $ 655 million “disappear[ing] in thin air. ”
In that news, the company’s share price fell $ 0.82, or approximately 13%, to close at $ 5.53 per share on April 6, 2021 amid unusually high trading volume.
On April 6, 2021, after the market closed, Ebang made a statement stating that the report “contains[ed] Lots of errors, unsupported speculation and inaccurate interpretations of events, ”the Board of Directors, together with its Audit Committee, intends to further examine and examine the allegations and misinformation contained therein and will take all necessary and reasonable measures to protect the interests of its shareholders . ”
In that news, the company’s share price fell $ 0.12, or 2.17%, to close at $ 5.41 per share on April 7, 2021. The share price continued to drop $ 0.38, or 7%, during the next trading session, closing at $ 5.03 per share on April 8, 2021 amid unusually high trading volumes.
Throughout the teaching period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business, and prospects. Specifically, Defendants have failed to advise investors: (1) that the proceeds of Ebang’s public offerings were used in low-yielding long-term bonds to an subscriber and affiliates rather than used to develop the company’s business; (2) Ebang’s sales decreased and the company increased reported sales, including through the sale of defective units; (3) Ebang’s attempts to go public in Hong Kong had failed due to allegations of embezzlement of investor funds and excessive sales; (4) that Ebang’s alleged cryptocurrency exchange was merely the purchase of an out-of-the-box cryptocurrency exchange; and (5) that Defendants’ positive statements about the Company’s business, operations and prospects as a result of the foregoing were materially misleading and / or unfounded.
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If you purchased Ebang securities during the class period, you may move the court no later than 60 days after this notice to request the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or take no action and remain an absent member of the class. If you have purchased Ebang securities, have information or would like 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 Frank R. Cruz of the Frank R. Law Firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, email firstname.lastname@example.org or visit our website at www.frankcruzlaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.
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