Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against EHang Holdings Limited and Encourages Investors to Contact the Firm
Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announced that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who have purchased EHang Holdings Limited (NASDAQ: EH) ) American Depositary Shares (“ADS”) between December 12, 2019 and February 16, 2021 inclusive (the “Class Period”). Investors have until April 19, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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On February 16, 2021, analyst Wolfpack Research published a scathing report entitled “EHang: A Stock Promotion For Crash and Burn”. In that report, Wolfpack Research wrote that EHang “is an elaborate warehouse lift based on largely fabricated revenue based on bogus sales contracts with a customer [Shanghai Kunxiang Intelligent Technology Co., Ltd. (“Kunxiang”)] Who seems to us to be more interested in adding value to their retail investment? . . than about buying its products. Wolfpack Research wrote that it “gathered extensive evidence” to support its report, “including behind-the-scenes photos, recorded phone calls and videos of on-site visits to EH’s various facilities. . . Wolfpack Research also found that “EH’s public relations team, as a publicly traded company, published 50 press releases in just 14 months. . . . However, the steady stream of press releases from EH is easy to prove untrue. Ultimately, Wolfpack Research wrote that it “received Chinese court records showing that EH’s UAW may already be at serious risk due to legal issues in China. “
In that news, the price of EHang’s ADS fell from its closing price of $ 124.09 on February 12, 2021 to a closing price of $ 46.30 per share on February 16, 2021, a decrease of $ 77.79 per share or approximately Corresponds to 62.7% per day.
The complaint, filed on February 17, 2021, alleges that the defendants made materially false and misleading statements about the company’s business throughout the class period. In particular, the defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company’s alleged regulatory approvals in Europe and North America for its EH216 were for use as a drone and not for carrying passengers; (ii) his relationship with his alleged primary customer is a sham; (iii) EHang has only accumulated a fraction of its reported sales since its ADS traded on NASDAQ in December 2019. (iv) the company’s manufacturing facilities were virtually empty with no evidence of advanced manufacturing facilities or employees; and (v) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
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If you purchased EHang ADS during the classroom and suffered a loss, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by emailing firstname.lastname@example.org, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210218005818/de/
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.