NEWTOWN, PA / ACCESSWIRE / November 10, 2023 / Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving EHang Holdings Ltd. (NASDAQ:EH) and whether its senior officers disseminated false and misleading statements and/or failed to disclose material information to investors (the "EHANG Investigation"). Details of the alleged fraud were published in a report by Hindenburg Research entitled, "EHang: Hollow Order Book And Fake Sales Make This China-Based eVTOL Company Last In Line For Takeoff," on November 7, 2023.
If you have information that could assist in the EHangInvestigation or if you are an EHang investor who suffered a loss and would like to learn more, you can provide your information HERE.
You can also contact attorneys Eric Lechtzin or Marc Edelson of Edelson Lechtzin LLP by calling 844/563-5550 or via e-mail at elechtzin@edelson-law.com or medelson@edelson-law.com.
THE COMPANY: EHang, based in Guangzhou, China, describes itself as "the world's leading urban air mobility ("UAM") technology platform company." The company's mission "is to enable safe, autonomous, and eco-friendly air mobility accessible to everyone."
THE ALLEGED WRONGDOING: The company has allegedly misled the market about preorders of its eVTOL aircraft, which Hindenburg Research says, "bear all the hallmarks of fake revenue."
THE REVELATION: On October 17, 2023, GuruFocus Research published an article saying that EHang stock appeared to be "significantly overvalued," given its loss per share of $0.85 over the previous 12 months, and 3-year average revenue growth that ranked "worse than 98.48% of 264 companies in the Aerospace & Defense industry."
Then, on November 7, 2023, Hindenburg Research issued a report raising numerous red flags, including a $23 million capital infusion from a Korean music producer previously sentenced to 2 years in prison for embezzlement. The report also noted that EHang has not reported any insider stock purchases since going public. Instead, insiders have dumped more than 28 million shares. Finally, Hindenburg reported that "over 92% of EHang's preorder book is based on deals that were later "abandoned" or came from customers in no financial position to purchase EHang's aircraft…." On this news the price of EHang stock plummeted from a high of $15.89 per share on November 6, to close at $13.06 per share on November 7, 2023.
About Edelson Lechtzin LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices. For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-563-5550 or 215-867-2399
Email: elechtzin@edelson-law.com or medelson@edelson-law.com
Web: www.edelson-law.com
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so counsel does not represent you unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery does not depend on serving as lead plaintiff.
SOURCE: Edelson Lechtzin LLP
View source version on accesswire.com:
https://www.accesswire.com/802236/ehang-holdings-ltd-investigation-alert-edelson-lechtzin-llp-announces-investigation-into-ehang-holdings-ltd-nasdaq-eh-and-encourages-investors-with-substantial-losses-or-witnesses-with-relevant-information-to-contact-the-firm
