LOS ANGELES , March 10, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired EHang Holdings Limited ("EHang" or the "Company") (NASDAQ: EH) American Depositary Shares ("ADSs" or "shares") between December 12, 2019 and February 16, 2021 , inclusive (the "Class Period"). EHang investors have until April 19, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On February 16, 2021 , analyst Wolfpack Research published a research report entitled "EHang: A Stock Promotion Destined to Crash and Burn." Citing "extensive evidence" including "behind-the-scenes photographs, recorded phone calls, and videos of on-site visits to EH's various facilities," the report alleged that EHang is "an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts with a customer [Shanghai Kunxiang Intelligent Technology Co., Ltd.] who appears to us to be more interested in helping inflate the value of its investment in EH . . . than about buying its products." Wolfpack Research also noted that "in just 14 months as a publicly traded company, EH's PR team has put out 50 press releases . . . . However, EH's constant stream of press releases are easily proven untrue." Finally, the report alleged that Wolfpack Research "obtained Chinese court records which show that EH's ADRs may already be in serious jeopardy due to legal issues in China ."
On this news, the Company's share price fell $77.79 , or approximately 62.7%, to close at $46.30 per share, 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 that: (1) the Company's purported regulatory approvals in Europe and North America for its EH216 were for use as a drone, and not for carrying passengers; (2) its relationship with its purported primary customer is a sham; (3) EHang has only collected on a fraction of its reported sales since its ADS began trading on NASDAQ in December 2019 ; (4) the Company's manufacturing facilities were practically empty and lacked evidence of advanced manufacturing equipment or employees; and (5) as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
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If you purchased EHang ADSs during the Class Period, you may move the Court no later than April 19, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you purchased EHang ADSs, have information or 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 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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SOURCE The Law Offices of Frank R. Cruz , Los Angeles