Robbins Geller Rudman & Dowd LLP filed a class action in the Southern District of New York against Chinese mining hardware maker Canaan. The firm accuses the company of violating U.S. securities laws.
.@rgrdlaw filed a class action lawsuit today charging Canaan Inc. and certain of its executives with violations of U.S. securities laws and is seeking to represent purchasers between February 10, 2021 and April 9, 2021. $CAN https://t.co/fj5cbTWwPQ
— Robbins Geller (@rgrdlaw) April 15, 2021
Robbins Geller Rudman & Dowd LLP represents the interests of Nasdaq-listed investors who bought the securities during the period from February 10 to April 9, 2021.
According to the lawyers, on February 9, 2021, Canaan announced the resignation of its chief financial officer. The next day the company issued ‘positive statements’ about the number and size of orders.
\”As expected, the market reacted positively to this,\” the lawyers said.
They described Canaan’s statements about its financial prospects and business metrics as misleading. In the plaintiffs’ view, the manufacturer concealed disruptions in its equipment supply chain.
On April 12, 2021, Canaan reported a net loss of in the amount of $33 million for 2020. The company reported total hashing power of 6.6 million TH/s (down 37.1% from 2019) and also recorded a decline in gross profit from $79 million to $5.8 million.
After that, Canaan’s share price fell from $18.50 to $12.71.
Johnson Fistel also announced that it is pursuing a class-action. Interested parties should contact the lawyers no later than June 14, 2021.
The Portnoy Law Firm began investigating possible securities fraud. They did not rule out taking the case to court on behalf of investors.
In April, Wolf Haldenstein Adler Freeman & Herz LLP announced the filing of a class action against the mining company Ebang International Holdings Inc. after a report by Hindenburg Research.
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