Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Canaan Inc.

Radnor, Pennsylvania – (Newsfile Corp. – June 5, 2021) – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors of Canaan Inc. (NASDAQ: CAN) (“Canaan”) that a class action lawsuit for securities fraud has been filed in Filed names of those who purchased or acquired Canaan American Depositary Receipts (“ADRs”) between February 10, 2021 and April 9, 2021 (the “Class Period”).

Investor Deadline Reminder: Investors who purchased or acquired Canaan ADRs during the Class Period may apply to be appointed as the Class Lead Prosecutor no later than June 14, 2021. For more information or information on 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 [email protected]; 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 machines, primarily in the People’s Republic of China.

The class action period begins on February 10, 2021 when Canaan issued a press release claiming that Canaan’s “revenue transparency improved significantly in 2021 as a result of orders totaling more than 100,000 units of Bitcoin mining machines from customers in North America. Many of these orders were prepaid and are expected to be occupied [Canaan]the current manufacturing capacity fully for full year 2021 and beyond. “

Throughout the class action period, defendants kept silent about Canaan’s fourth quarter 2020 revenue increased more than 93% compared to fourth quarter due to ongoing supply chain disruptions and the introduction of Canaan’s next generation A12 series bitcoin mining machines. Year-on-year sales in 2019 and more than 93% compared to the previous quarter compared to sales in the third quarter of 2020.

The story goes on

According to the complaint, on April 12, 2021, prior to trading, Canaan issued a press release detailing the actual financial results for the fourth quarter of 2020 and fiscal year 2020 for the period ended December 31, 2020, including a 93% annual net income decline in computing power sold and of net sales for the quarter.

Following this news, the market price of Kanaan ADRs fell from its closing price of $ 18.67 per ADR on April 9, 2021 to a closing price of $ 13.14 per ADR on April 12, 2021, a decrease of nearly 30% corresponds to.

The lawsuit alleges that during the class action period the defendants withheld from the investing public that: (1) Canaan experienced significant supply chain disruptions in the fourth quarter of 2020; (2) the introduction of Canaan’s 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 decreased dramatically in the fourth quarter of 2020; and (4) as a result of the foregoing, Canaan was not on track to achieve the good financial prospects the market had believed.

Canaan investors may apply no later than June 14, 2021 to be appointed as lead class agent by Kessler Topaz Meltzer & Check, LLP, or other legal counsel, or they can choose to do nothing and remain an absent group member. A lead plaintiff is a representative party who acts on behalf of all class members in the conduct of the dispute. To be appointed as a lead plaintiff, the court must determine that the class plaintiff’s claim is typical of the claims of other class plaintiffs and that the class plaintiff is adequately representing the class action. Your ability to participate in a recovery will not be affected by whether or not you want to 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 state and federal laws. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has collected billions of dollars on behalf of institutional and private investors from the US and around the world. The firm represents investors, consumers and whistleblowers (individuals who report fraudulent practices to the government and participate in recovery of 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.

CONTACT:

Kessler Topas Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 König-von-Preußen-Strasse
Radnor, PA 19087
(844) 887-9500 (toll free)
[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/86510

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