Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Ebang International Holdings Inc.
RADNOR, PA / ACCESSWIRE / May 29, 2021 / Kessler Topaz Meltzer & Check, LLP law firm is reminding investors that a class action lawsuit has been filed against Ebang International Holdings Inc. (NASDAQ: EBON) (“Ebang”) for securities fraud on behalf of those who have since bought or bought Ebang securities acquired June 26, 2020 and April 5, 2021 inclusive (the “Class Period”).
Investor Deadline Reminder: Investors who have purchased or acquired Ebang Securities during the Class Period may apply for appointment as Plaintiff’s Primary Representative by June 7, 2021 at the latest. 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; by email firstname.lastname@example.org; or click on https://www.ktmc.com/ebang-international-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=ebang
Ebang is a leader in application specific integrated circuit chips and a leading manufacturer of bitcoin mining equipment. The class period begins on June 26, 2020 when Ebang submitted its prospectus in connection with its initial public offering (the “Initial Public Offering”). On October 23, 2020, Ebang filed its registration statement on a Form F-1 for an offer of Class A common shares and warrants to purchase Class A common shares. It was then changed on October 26, 2020, November 6, 2020 and November 16, 2020, before Ebang submitted a corresponding prospectus on a form 424b4 on November 20, 2020.
According to the complaint, on April 6, 2021, before the market opened, Hindenburg Research published a report claiming, among other things, that Ebang had channeled the proceeds from its IPO into a “series of opaque deals with insiders and questionable counterparties” last year. “” According to the report, Ebang raised $ 21 million in November 2020 and claimed the proceeds would be used “primarily 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 the air. “Following this news, Ebang’s share price fell $ 0.82, or approximately 13%, to close at $ 5.53 per share on April 6, 2021.
The story goes on
Then, on April 6, 2021, after the market closed, Ebang made a statement stating that the report “contains”[ed] Lots of mistakes, unsupported speculation, and imprecise interpretations of events. “The” Board of Directors intends, together with its Audit Committee, to further examine and investigate the allegations and misinformation contained therein and will take all necessary and reasonable steps to protect the interests of its shareholders. “Following this news, Ebang’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 fall $ 0.38, or 7%, during the next trading session and closed at $ 5.03 per share on April 8, 2021.
The complaint alleges that throughout the class period, defendants failed to notify investors that: (1) proceeds from Ebang’s public offerings were used instead of long-term, low-yielding bonds to an subscriber and related parties Ebang’s operations to be used for development; (2) Ebang’s sales were down, and Ebang had increased reported sales, including through sales 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) Ebang’s alleged cryptocurrency exchange was merely the purchase of an out-of-the-box crypto exchange. and (5) as a result of the foregoing, Defendants’ positive statements about Ebang’s business, business and prospects were materially misleading and / or unfounded.
Ebang investors can attempt to become principal representative of the class by Kessler Topaz Meltzer & Check, LLP, or other attorney no later than June 7, 2021, or they can 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 action lawsuits 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 reclaimed billions of dollars on behalf of institutional and individual investors from the US and around 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. For more information on Kessler Topaz Meltzer & Check, LLP, please visit 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
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