Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against Canaan Inc.
RADNOR, Pa., April 17, 2021 / PRNewswire / – Kessler Topaz Meltzer & Check, LLP’s law firm announces that a class action lawsuit has been brought against Canaan Inc. (NASDAQ: CAN) (“Canaan”) on behalf of those who purchased or acquired Canaan American Depositary Receipts (“ADRs”) between February 10, 2021 and April 9, 2021including (the “Class Period”).
Investor Deadline Reminder: Investors who bought or acquired ADRs from Canaan during the Class Period are allowed no later than June 14, 2021try to be appointed as the plaintiff’s principal representative of the class. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; per email to [email protected];; or click on https://www.ktmc.com/canaan-inc-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=canaan
Canaan designs, manufactures, and sells bitcoin mining equipment, primarily in People’s Republic of China.
The lesson begins on February 10, 2021When Canaan issued a press release claiming that Canaan’s “sales visibility” improved significantly in 2021 as orders for more than 100,000 units of Bitcoin mining machines were received from customers in Canada North America. Many of these orders were prepaid and likely to be occupied [Canaan]The current production capacity for all of 2021 and beyond. ”
Throughout the class period, defendants found that Q4 2020 sales rose more than a year earlier in the fourth quarter of 2020 due to ongoing supply chain disruptions and the introduction of Canaan’s next generation A12-series bitcoin mining machines Sales in 2019 fell 93% and sales fell by more than 93% compared to the previous quarter compared to sales in the third quarter of 2020.
According to the complaint on April 12, 2021Prior to opening trading, Canaan issued a press release disclosing actual financial results for the fourth quarter of 2020 and fiscal year 2020 for the period just ended December 31, 2020including a 93% year-over-year decrease in compute power sold and net revenue for the quarter.
Following this news, the market price of ADRs in Canaan fell from their closing price of $ 18.67 by ADR April 9, 2021 to close at $ 13.14 by ADR April 12, 2021a decrease of almost 30%.
The complaint alleges that throughout the class period, defendants withheld from the investing public that: (1) Kanaan experienced significant sustained supply chain disruptions in the fourth quarter of 2020; (2) Canaan’s introduction of the next-generation A12 series bitcoin mining machines had cannibalized sales of the older product offerings in the fourth quarter of 2020. (3) As a result of the foregoing, Canaan’s sales and revenue declined dramatically in the fourth quarter of 2020. and (4) as a result of the foregoing, Canaan was not on track to achieve the strong financial outlook that the market had believed in.
Canaan investors can, at the latest June 14, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has collected billions of dollars on behalf of institutional and individual investors The United States and all over the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP