EBANG ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Ebang International Holdings, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces 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 bought Ebang International Holdings. Inc. (NASDAQ: EBON) securities between June 26, 2020 and April 5, 2021 inclusive (the “Class Period”). Investors have until June 7, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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On April 6, 2021, Hindenburg Research published a report claiming, among other things, that Ebang 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, 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 stock price fell $ 0.82, or approximately 13%, to close at $ 5.53 per share on April 6, 2021.
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 share price fell $ 0.12, or 2.17%, to close at $ 5.41 per share on April 7, 2021. The stock price continued to drop $ 0.38, or 7%, during the next trading session, closing at $ 5.03 per share on April 8, 2021.
The complaint, filed on April 8, 2021, alleges that throughout the teaching period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, operations 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.
If you have purchased Ebang securities during the class period and have suffered a loss, have information, want to learn more about these claims, or have any 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 email@example.com, 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.