Robbins Geller Rudman & Dowd LLP Announces Lead Plaintiff Deadline in the Canaan Inc. Class Action Lawsuit

NEW YORK–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announced that buyers of Canaan Inc. (“Canaan” or the “Company”) (NASDAQ: CAN) will receive American Depositary Receipts (“ADRs”) between February 10, 2021 and March 9, 2021. April 2021 (The “Classification Deadline” (the “Kanaan Class Action”) has until June 14, 2021 to be appointed lead plaintiff in the Canaan Class Action Denny v Canaan Inc., No. 21-cv-03299 (SDNY) to apply) assigned to Judge John P. Cronan.

The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Canaan ADRs during the class period to seek appointment as the lead plaintiff in the Canaan class action. A lead plaintiff is generally the applicant with the greatest financial interest in the relief sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other class members in directing the Canaan class action. The lead plaintiff can choose a law firm of their choice to bring the class action lawsuit in Canaan. An investor’s ability to participate in a possible future recovery of the Canaan class action does not depend on whether they are the lead plaintiff. If you want to stand as the lead plaintiff in the Canaan class action, you must move the court no later than 60 days after April 15, 2021. If you would like to discuss the Canaan class action or have any questions about this or your communication, please include your information here or contact plaintiff’s attorney, Mary K. Blasy of Robbins Geller, at 800 / 449- 4900 or 631-454-7719 or by email to [email protected]. You can view a copy of the complaint at https://www.rgrdlaw.com/cases-canaan-class-action-lawsuit.html.

In the class action lawsuit against Kanaan, Kanaan and some of its officers and directors are charged with violating the Securities Exchange Act of 1934. Canaan designs, manufactures, and sells Bitcoin mining equipment primarily in the People’s Republic of China.

The Canaan class action alleges that the 2020 fiscal year (“FY 20”) in Canaan ended on December 31, 2020. On February 9, 2021, almost six weeks later, Canaan announced that its former Chief Financial Officer (“CFO”) Quanfu Hong (“Hong”) had suddenly resigned with immediate effect, providing no explanation and only citing “personal reasons” . The next day, February 10, 2021, Canaan issued a press release announcing that its “sales visibility a[d] substantially improved ”and other positive statements about the supposed visibility in terms of increasing the size and quality of the orders received by the company. These statements were announced by the investment community in light of statements by former CFO Hong on November 30, 2020 that “the demand for mining equipment in the market continued to grow in the third quarter and that Canaan” received a large number of pre-sale orders [were] Delivery is planned for the fourth quarter of 2020. “(” 4Q20 “). Predictably, the market responded positively to these statements, increasing the market price of ADRs in Canaan from $ 6.91 on Monday, February 8th to $ 13.04 on Friday, February 12th, an increase of nearly 90% .

However, the statements that Canaan made about the company’s business metrics and financial prospects during the class period were materially inaccurate and misleading in that they obscured that due to ongoing supply chain disruptions and the introduction of the company’s next generation bitcoin mining machines, the A12 Series – The cannibalization of sales of older product offerings – Canaan’s fourth quarter 20 sales were down more than 93% year over year from the fourth quarter of fiscal 2019 (“4Q19”) and more than 93% year over year sales in the quarter of fiscal year 20 (“3Q20”). As a result, Canaan’s net sales in the fourth quarter of 20 were from 463.2 million RMB in the fourth quarter of 19 to 163.2 million and in the third quarter of 20 to 163.0 million RMB to 38.2 million RMB (5, $ 9 million).

On Monday, April 12, 2021, prior to the opening of trading, Canaan released a press release detailing the actual financial results for the 4th quarter of 20 and fiscal year 20 for the period ended December 31, 2020, including a decrease in computing power 93% year-over-year were sold and net sales for the quarter. In that news, the market price for ADRs in Canaan slumped from $ 18.67 per ADR on April 9, 2021 to $ 13.14 per ADR on April 12, 2021, a decrease of nearly 30% on an unusually high volume of around USD 60 million corresponds to ADR’s trading, more than three times the average daily volume in the last ten trading days.

The plaintiff is represented by Robbins Geller, who has extensive experience pursuing class action lawsuits from investors, including financial fraud lawsuits.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms serving investors in securities disputes. With 200 attorneys in 9 law firms, Robbins Geller has filed many of the largest securities lawsuits in history. ISS Securities Class Action Services has ranked Robbins Geller as one of the world’s top law firms since 2010. Billions for investors last year, more than double the amount collected by another claimant firm. Robbins Geller’s lawyers helped shape securities laws and reclaimed tens of billions of dollars on behalf of injured victims. In addition to securing financial repayments for duped investors, Robbins Geller is focused on implementing corporate governance reforms that will help improve financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by the courts, professional associations and the media as the leading attorneys in the industry. Please visit http://www.rgrdlaw.com for more information.

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