SAN FRANCISCO, April 9, 2021 /PRNewswire/ — Hagens Berman urges Ebang Worldwide Holdings (NASDAQ: EBON) buyers with important losses to submit your losses now. A securities fraud class motion has been filed and sure buyers might have helpful claims.
Ebang Worldwide Holdings (NASDAQ: EBON) Securities Fraud Class Motion:
The grievance focuses on the accuracy of Ebang’s statements regarding its use of capital raised from buyers and its declare to be a number one producer of bitcoin mining machines.
In response to the grievance, over the previous yr, Ebang raised roughly $374 million from buyers in public choices and represented it might use these proceeds to “additional develop our operations” in cryptocurrency mining, alternate platforms, and basic company functions.
Buyers started to be taught the reality, in response to the grievance, on Apr. 6, 2021, when analyst Hindenburg Analysis revealed a scathing report entitled “Ebang: But One other Crypto ‘China Hustle’ Absconding With U.S. Investor Money.”
In response to Hindenburg, the corporate directed a lot of the money out of the corporate by means of a sequence of opaque offers with entities linked to Ebang’s Chairman/CEO and its underwriter. Particularly, Hindenburg concludes the corporate directed (1) $103 million into bond purchases linked to its underwriter which has a monitor file of fraud allegations levied towards it, and (2) $21 million to a relative of its Chairman/CEO coincident with elevating that quantity from buyers.
Hindenburg additionally concludes Ebang shouldn’t be a number one bitcoin mining machine producer, solely bought a pittance in comparison with different giant Chinese language producers, and is slated for a 97% decline in such gross sales for FY 2020.
In response, the value of Ebang shares declined sharply.
“We’re targeted on buyers’ losses and proving Ebang lied to buyers about its true operations and use of capital,” mentioned Reed Kathrein, the Hagens Berman associate main the investigation.
If you’re an Ebang investor and have important losses, or have data which will help the agency’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with private info concerning Ebang ought to think about their choices to assist in the investigation or benefit from the SEC Whistleblower program. Below the brand new program, whistleblowers who present unique info might obtain rewards totaling as much as 30 % of any profitable restoration made by the SEC. For extra info, name Reed Kathrein at 844-916-0895 or e-mail [email protected].
About Hagens Berman
Hagens Berman is a nationwide legislation agency with eight workplaces in eight cities across the nation and over eighty attorneys. The agency represents buyers, whistleblowers, staff and shoppers in complicated litigation. Extra concerning the agency and its successes is positioned at hbsslaw.com. For the newest information go to our newsroom or observe us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP