Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Ideanomics Inc. (“Ideanomics” or the “Company”) (NASDAQ: IDEX) securities between May 15, 2017 and November 13, 2018, inclusive (the “Class Period”). Ideanomics investors have until September 17, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Ideanomics investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On November 14, 2018, the Company announced that it would “phase out [its] oil trading and consumer electronics businesses, with the intention to fully divest these assets in the near future.” It also disclosed that it did “not anticipate meeting [its] EBITDA guidance of $35 million for fiscal year 2019” due to “costs associated with building out [its] U.S. infrastructure and hiring [its] new executive team.”
On this news, the Company’s share price fell $1.59, or more than 48%, to close at $1.67 on November 14, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that costs associated with building out Ideanomics’ U.S. infrastructure and hiring its new executive team were negatively impacting the Company’s bottom line performance; (2) that, as a result, Ideanomics was highly unlikely to meet its 2018 EBITDA guidance; (3) that Ideanomics’ margins in its oil trading and consumer electronics businesses were too low for those businesses to remain viable; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased securities of Ideanomics, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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