PHILADELPHIA , Jan. 7, 2021 /PRNewswire/ -- Berger Montague is investigating potential securities fraud claims against Kandi Technologies Group, Inc. ("Kandi" or the "Company") on behalf of investors who purchased Kandi securities (NASDAQ: KNDI) between March 15, 2019 and November 27, 2020 (the "Class Period").
If you purchased Kandi securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Donnell Much at dmuch@bm.net or (215) 875-4667, or contact us at www.bergermontague.com/kandi .
A recently filed lawsuit accuses the Company and its senior management of making materially false and misleading statements regarding Kandi's operations and financial performance. Specifically, according to the suit, Defendants failed to disclose that: (i) Kandi artificially inflated its reported revenues through undisclosed related-party transactions or non-arm's-length relationships with key customers; and (ii) the majority of Kandi's sales in the past year had been to undisclosed related-parties and/or parties with such a close relationship and history with Kandi that it cast doubt on the arms-length nature of their relationship.
The complaint alleges that investors learned the true state of the Company's operations on November 30, 2020 , when Hindenburg Research ("Hindenburg") published a report titled "Kandi: How This China-Based NASDAQ-Listed Company Used Fake Sales, EV Hype to Nab $160 Million From U.S. Investors." Citing "extensive on-the-ground inspection at Kandi's factories and customer locations in China , interviews with over a dozen former employees and business partners, and review of numerous litigation documents and international public records," the Hindenburg report asserted that almost 64% of Kandi's sales over the year had been to undisclosed related parties. The report also alleged that "[Kandi] has consistently booked revenue it cannot collect, a classic hallmark of fake revenue[.]"
The Hindenburg report sent the price of Kandi's stock plummeting more than 28%, from a closing price of $13.62 per share on November 27, 2020 to $9.76 per share on November 30, 2020 .
If you purchased Kandi securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is February 9, 2021 . You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Kandi are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague , with offices in Philadelphia , Minneapolis , Washington, D.C. , and San Diego , has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States .
Contacts
Andrew Abramowitz , Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Donnell Much , Associate
Berger Montague
(215) 875-4667
dmuch@bm.net
View original content to download multimedia: http://www.prnewswire.com/news-releases/kndi-stock-berger-montague-investigates-alleged-securities-fraud-claims-against-kandi-technologies-group-inc-nasdaq-kndi-lead-plaintiff-deadline-is-february-9-2021-301202502.html
SOURCE Berger Montague