Shareholders with $50,000 in losses or more are encouraged to contact the firm
The Law Offices of Frank R. Cruz reminds investors of the upcoming August 27, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Ideanomics, Inc. ("Ideanomics" or the "Company") (NASDAQ: IDEX) common stock between March 20, 2020 and June 25, 2020, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On June 25, 2020, Hindenburg Research issued a series of tweets stating that Ideanomics “is an egregious & obvious fraud.” Hindenburg claimed that it found evidence that Ideanomics “doctored photos in its PR to suggest it owns/operates” a facility. Hindenburg further stated that it had an investigator who visited Ideanomics’ “supposed MEG sales center,” and that the “facility is actually operated by almost 100 sales groups,” that had never heard of Ideanomics. Additionally, Hindenburg claimed that its investigator called five of Ideanomics’ purported electric vehicle customers, and that none were aware of Ideanomics, nor could they confirm doing business with Ideanomics.
The same day, J Capital Research published a report, corroborating Hindenburg’s allegations. Specifically, J Capital “called all the ‘buyers’ named in [the Company’s] press releases this month. Not a single one had made a purchase. One of them thanked us for alerting them to ‘fake news.’”
On this news, the Company’s share price fell $0.65, or more than 21%, to close at $2.44 per share on June 25, 2020, thereby injuring investors.
Then, on June 26, 2020, the Company issued a press release, seeking to “clarify the status” of its purported hub in Qingdao, China. Therein, Ideanomics walked back certain of its prior statements regarding the MEG Center, stating its as launching three phases of its MEG Center that will eventually total one million square feet. The first phase occupies only 215,000 square feet.
On this news, the Company’s share price fell $0.98, or 40%, to close at $1.46 per share on June 26, 2020, thereby injuring investors further.
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 Ideanomics’ MEG Center in Qingdao was not “a one million square foot EV expo center”; (2) that the Company had been using doctored or altered photographs of the purported MEG Center in Qingdao; (3) that the Company’s electric vehicle business in China was not performing nearly as strong as Ideanomics had represented; and (4) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
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If you purchased or otherwise acquired Ideanomics securities during the Class Period, you may move the Court no later than August 27, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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