INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against Ebang International Holdings, Inc.
NEW YORK–(BUSINESS WIRE) – Kirby McInerney LLP law firm announces that a class action lawsuit has been filed in the US District Court for the Southern Borough of New York on behalf of those who acquired Ebang International Holdings, Inc. (“Ebang” or “Ebang”). Corporations ”) (NASDAQ: EBON) securities from June 26, 2020 through April 5, 2021 (the“ Class Period ”) inclusive. Investors have until June 7, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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.
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 per share, 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 stock price fell $ 0.12 per share, or 2.17%, to close at $ 5.41 per share on April 7, 2021. The stock price continued to fall $ 0.38 per share, or 7%, during the next trading session. to close on April 8, 2021 with unusually high trading volume at $ 5.03 per share.
If you have bought or otherwise acquired Ebang securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, via email at investigations @ kmllp. com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm focused on securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of $ billion. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
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