Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Lawsuit Filed Against Canaan Inc.
RADNOR, Pa .– (BUSINESS WIRE) – The law firm of Kessler Topaz Meltzer & Check, LLP, announced that a class action lawsuit for securities fraud has been filed against Canaan Inc. (NASDAQ: CAN) (“Canaan”) on behalf of the US District Court for the Southern District of New York those who purchased or acquired Canaan American Depositary Receipts (“ADRs”) between February 10, 2021 and April 9, 2021 (including the “Class Period”)
Investor Deadline Reminder: Investors who purchased or acquired ADRs from Canaan during the Class Period can: 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; by email to firstname.lastname@example.org; 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 the People’s Republic of China.
The class period begins on February 10, 2021 when Canaan issued a press release claiming that Canaan’s sales visibility has improved significantly in 2021 as orders of more than 100,000 units of Bitcoin mining machines have been received from customers in 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, 2021, prior to opening trading, Canaan released a press release disclosing actual financial results for the fourth quarter of 2020 and fiscal year 2020 for the period ended December 31, 2020, including a 93% net income – decline of compute power sold and net revenue for the quarter.
Following this news, the market price for ADRs in Canaan fell from $ 18.67 per ADR on April 9, 2021 to $ 13.14 per ADR on April 12, 2021, a decrease of nearly 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, no later than 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 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. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.