RADNOR, Pa., April 18, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors that a securities fraud class action lawsuit has been filed against Ebang International Holdings Inc. (NASDAQ: EBON) (“Ebang”) on behalf of of those who bought or acquired Ebang securities Between June 26, 2020 and April 5, 2021, inclusive (the “Class Period”).
Deadline reminder for investors: investors who bought or acquired Ebang securities during the Recourse Period may, not later than June 7, 2021, seeks to be appointed principal representative of the applicants of the group. For more information or to find out how to participate in this dispute, 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 e-mail to [email protected]; or Click on https://www.ktmc.com/ebang-international-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=ebang
Ebang is a leading application-specific integrated circuit chip design company and a leading manufacturer of Bitcoin mining machines.
According to the complaint, the April 6, 2021, before the market opened, Hindenburg Research released a report alleging, among other things, that Ebang was directing the proceeds of its IPO last year into a “series of dark deals with insiders and dubious counterparties.” . The report also noted that Ebang’s earlier efforts to go public on the Hong Kong Stock Exchange had failed due to widespread media coverage of a sales inflation program with Yindou, a lending platform in Chinese peer-to-peer line that defrauded 20,000 retail investors in 2018, with $ 655 million “disappear[ing] in the air. “Following this news, Ebang’s share price fell $ 0.82, or about 13%, to close at $ 5.53 per share on April 6, 2021.
Then on April 6, 2021, after the market closed, Ebang released a statement stating that although it believed the report “contained[ed] numerous errors, unsubstantiated speculation and misinterpretations of events, “the” Board, with its Audit Committee, intends to review and further investigate the allegations and misinformation contained therein and will take all necessary and appropriate measures that may be necessary to protect the interests of its shareholders. “The share price continued to decline during the next trading session. $ 0.38, or 7%, to close at $ 5.03 per share on April 8, 2021.
The complaint alleges that, throughout the period of the action, the defendants did not disclose to investors that: (1) the proceeds of Ebang’s public offerings were directed to low yielding, long-term bonds at an underwriter and related parties rather than used to develop Ebang’s operations; (2) Ebang’s sales were down and Ebang had inflated reported sales, notably through the sale of defective units; (3) Ebang’s attempts to go public Hong Kong failed due to allegations of embezzlement of investor funds and inflated sales figures; (4) Ebang’s purported cryptocurrency exchange was simply the purchase of a ready-made crypto exchange; and (5) as a result of the foregoing, the defendants’ positive statements regarding Ebang’s business, operations and prospects were materially misleading and / or lacking reasonable basis.
Ebang investors can, not later than June 7, 2021, seeks to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may choose to do nothing and remain an absent class member. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. To be appointed as the Principal 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 will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP is pursuing class actions in state and federal courts across the country relating to securities fraud, breaches of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors from United States and all over the world. The company represents investors, consumers and whistleblowers (private citizens who expose fraudulent practices against the government and participate in the recovery of public funds). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP