SAN FRANCISCO, CA / ACCESSWIRE / May 11, 2021 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
CAN Investors Click Here.
DOX Investors Click Here.
EBON Investors Click Here.
Canaan Inc. (NASDAQ:CAN) Securities Fraud Action:
Class Period: Feb. 10, 2021 - Apr. 9, 2021
Lead Plaintiff Deadline: June 14, 2021
Visit:www.hbsslaw.com/investor-fraud/CAN
Contact An Attorney Now:CAN@hbsslaw.com
844-916-0895
The complaint is focused on Canaan's statements about its bitcoin mining machine business.
According to the complaint, in past months, Canaan has falsely touted substantial improvement in its revenue visibility, its ability to more precisely forecast revenues, and its receipt of larger orders for its bitcoin mining machines. As recently as Apr. 9, 2021, Canaan's CEO reportedly assured investors that the global shortage of chips used in its equipment did not negatively impact the company.
But, on Apr. 12, 2021, Canaan reported horrible Q4 and FY 2020 financial results. Blaming supply chain disruptions, the company reported Q4 2020 total computing power sold tanked 93% year-over-year and quarter-over-quarter. Canaan also reported FY 2020 total computing power sold tanked 37% year-over-year. During the company's earnings conference call that morning CEO Nangeng Zhang admitted, contrary to earlier statements, that Canaan had in fact run into a severe shortage of chip supply.
This news sent the price of Canaan American Depositary Shares crashing nearly 30% lower that day.
"We're focused on investors' losses and proving Canaan intentionally and falsely assured investors of its forecasted revenues and its insulation from the chip shortage," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Canaan investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Amdocs Limited (NASDAQ:DOX) Securities Fraud Class Action:
Class Period: Dec. 13, 2016 - Mar. 30, 2021
Lead Plaintiff Deadline: June 8, 2021
Visit: www.hbsslaw.com/cases/DOX
Contact an Attorney Now:DOX@hbsslaw.com
844-916-0895
The complaint alleges that Defendants misrepresented and omitted material facts, including that: (i) Amdocs overstated its profits, cash, and liquidity, while understating its debt; (ii) Amdocs concealed its large borrowing; (iii) while Amdocs' reported results showed that its North American business was stable, that business was actually deteriorating annually, in part because the Company was losing AT&T as a customer; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
The Complaint alleges that on Mar. 31, 2021, the truth emerged when Jehoshaphat Research published a scathing report entitled, "Where Did Amdocs' Profits And Auditors Go?", concluding that Amdocs is "a massive financial deception" and "the stock is uninvestable."
Based on a review of Amdocs international subsidiaries' filings overseas, Jehoshaphat claims Amdocs has overstated profits by as much as 50%, that its reported profit margins are "wildly" inflated, and approximately 1/3 of Amdocs' stated cash is unavailable for use. Jehoshaphat reported that former employee and direct competitor interviews confirmed its findings that Amdocs "has been losing business for years but has made up for these losses by inflating financials, sometimes to a point beyond recognition by the country managers." Jehoshaphat also raised concerns about the Company subsidiaries' auditor resignations during the last two years.
In response, the price of Amdocs shares fell over 11% on Mar. 31, 2021, wiping out hundreds of millions of dollars of shareholder value.
"We're focused on investors' losses and proving Amdocs cooked its books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Amdocs investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Ebang International Holdings (NASDAQ:EBON) Securities Class Action:
Class Period: June 26, 2020 - Apr. 5, 2021
Lead Plaintiff Deadline: June 7, 2021
Visit:www.hbsslaw.com/investor-fraud/EBON
Contact An Attorney Now:EBON@hbsslaw.com
844-916-0895
The complaint focuses on the accuracy of Ebang's statements concerning its use of capital raised from investors and its claim to be a leading manufacturer of bitcoin mining machines.
More specifically, over the past year, Ebang raised approximately $374 million from investors in public offerings and represented it would use these proceeds to "further expand our operations" in cryptocurrency mining, exchange platforms, and general corporate purposes.
These statements were brought into question on Apr. 6, 2021, when analyst Hindenburg Research published a scathing report entitled "Ebang: Yet Another Crypto ‘China Hustle' Absconding With U.S. Investor Cash."
According to Hindenburg,the company directed much of the cash out of the company through a series of opaque deals with entities linked to Ebang's Chairman/CEO and its underwriter. Specifically, Hindenburg concludes the company directed (1) $103 million into bond purchases linked to its underwriter which has a track record of fraud allegations levied against it, and (2) $21 million to a relative of its Chairman/CEO coincident with raising that amount from investors.
Hindenburg also concludes Ebang is not a leading bitcoin mining machine producer, only sold a pittance compared to other large Chinese producers, and is slated for a 97% decline in such sales for FY 2020.
In response, the price of Ebang shares declined sharply.
"We're focused on investors' losses and whether Ebang lied to investors about its true operations and use of capital," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Ebang investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Canaan, Amdocs, and/or Ebang should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CAN@hbsslaw.com, DOX@hbsslaw.com, and/or EBON@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
View source version on accesswire.com:
https://www.accesswire.com/646524/CLASS-ACTION-UPDATE-for-CAN-DOX-EBON-Hagens-Berman-Updates-Investors-on-Securities-Class-Actions-Advises-Investors-with-Losses-to-Contact-the-Firm
