The law firm Wolf Haldenstein Adler Freeman & Herz LLP announced the filing of a class-action in the United States District Court for the Southern District of New York against Chinese mining company Ebang International Holdings Inc.
The plaintiffs will include investors who purchased the company’s shares from June 26, 2020, through April 5, 2021, inclusive.
Anyone wishing to join the suit may contact the lawyers no later than June 7, 2021.
Ebang is suspected of misallocation of $374 million, raised through four rounds after the IPO. According to Hindenburg Research, $103 million of this amount was spent on the purchase of shares of the underwriter AMTD Group with a dubious reputation. Another $21 million went to repayment of loans raised by a relative of founder Dong Hu.
The company called Hindenburg Research’s conclusions unfounded. In the wake of these statements, Ebang’s shares fell 14.8% during trading on April 6-7.
Earlier, in late June 2020, Ebang said it planned to expand its business by creating an exchange after its Nasdaq IPO.
During the initial public offering the company raised $101 million.
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