EH CLASS ACTION NOTICE: Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against EHang Holdings Limited
THE ANGEL–(BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces that they have filed a class action lawsuit against EHang Holdings Limited et al. In the US District Court for the Southern Borough of New York entitled Chaumont. (Case) filed No. 1: 21-cv-01526) on behalf of any person or entity operating between December 12, EHang Holdings Limited (“EHang” or the “Company”) (NASDAQ: EH) American Depositary Shares ( “ADSs”) purchased or otherwise acquired in 2019 and including February 16, 2021 (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 until April 19, 2021 to appoint the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your EHang investments or would like to inquire about whether you may be able to make claims to recover your loss under federal securities laws, you can have your contact information at https://www.glancylaw.com/cases / Submit ehang holdings – limited /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or by email at Shareholder@glancylaw.com or on our website at www.glancylaw.com for more information about your rights.
On February 16, 2021, analyst Wolfpack Research published a research report entitled “EHang: A Stock Promotion That Is Destined to Crash and Burn”. Citing “extensive evidence” including “behind-the-scenes photos, recorded phone calls, and videos of on-site visits to EH’s various facilities,” the report claimed that EHang is “an elaborate stock promotion based on largely fabricated revenue, those based on bogus sales contracts with a customer [Shanghai Kunxiang Intelligent Technology Co., Ltd.] Who seems to us to be more interested in adding value to their retail investment? . . than about buying its products. Wolfpack Research also noted, “In just 14 months as a publicly traded company, EH’s PR team published 50 press releases…. EH’s constant flow of press releases, however, has easily been proven to be untrue.” Finally, the report alleged “Wolfpack Research has received” Chinese court records showing that EH’s UAW may already be at serious risk due to legal issues in China. ”
On that news, the company’s share price fell $ 77.79, or approximately 62.7%, to close at $ 46.30 per share, hurting investors.
The complaint filed in this class action alleges that throughout the class 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 Company’s alleged regulatory approvals in Europe and North America for its EH2216 were for use as a drone rather than for the carriage of passengers; (2) that EHang’s relationship with its alleged primary customer is a sham; (3) that EHang has only accumulated a fraction of its reported sales since its ADS were traded on the NASDAQ exchange; (4) that the company’s manufacturing facilities were virtually empty and there was no evidence of advanced manufacturing equipment or employees; (5) As a result of the foregoing, Defendants’ positive statements regarding the Company’s business, operations and prospects were materially misleading and / or had no reasonable basis.
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If you purchased or otherwise acquired the EHang ADS during the classroom period, you can move the court no later than April 19, 2021 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 would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email Shareholders@glancylaw.com or visit our website at www.glancylaw.com. When inquiring by email, please include your mailing address, telephone number and number of shares purchased.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.