[2021-04-16] Lawsuits against Ebang and Canaan

[Daltonik]

Investors are filing lawsuits against two mining companies, Ebang International Holdings Inc and Canaan Inc. The law firm Wolf Haldenstein Adler Freeman & Herz LLP has announced the filing of a class-action lawsuit in the Federal Court of the Southern District of New York against the Chinese mining company Ebang International Holdings Inc. https://www.whafh.com/archives/case/ebang-international-holdings-inc-nasdaq-ebon

The plaintiffs will include investors who purchased the company's shares between June 26, 2020 and April 5, 2021, inclusive. Those wishing to join the lawsuit can contact the lawyers no later than June 7, 2021.

Ebang is suspected of misusing $374 million raised in four rounds after the IPO. According to analysts at Hindenburg Research, the company spent $103 million of this amount to buy shares of the underwriter AMTD Group with a dubious reputation. Another $21 million went to pay off loans raised by a relative of Ebang founder Dong Hu. Read more in an earlier article https://hindenburgresearch.com/Ebang/

The company called the findings of Hindenburg Research unfounded.

Also, the lawyers of Robbins Geller Rudman & Dowd LLP filed a class action lawsuit in the court of the Southern District of New York against the Chinese miner manufacturer Canaan. Here we are talking about investors who bought securities in the period from February 10 to April 9, 2021. According to lawyers, the resignation of the CFO of Canaan on February 9, 2021 was only a cover-up hiding failures in the supply chain of equipment, which led to the loss of $33 million incurred by Canaan on April 12, 2021, according to the results of 2020. Law firm Johnson Fistel also announced work on a class-action lawsuit. Those wishing to join the process must contact the lawyers no later than June 14, 2021. https://www.prnewswire.com/news-releases/johnson-fistel-llp-files-class-action-suit-against-canaan-can-301270522.html

The Portnoy Law Firm has launched an investigation into possible securities fraud. They did not rule out that they will go to court on behalf of investors  https://www.globenewswire.com/news-release/2021/04/15/2211184/0/en/Canaan-Inc-Investors-Company-Investigated-by-the-Portnoy-Law-Firm.html

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[bbc.reporter]

It has begun. This is also what Trump had planned to do versus Chinese companies listed on the New York Stock Exchange and the Nasdaq if he won. I predict more Chinese companies to be pressured and investigated. It appears I was wrong. Biden is not China’s servant hehehe.

[Slow death]

Ebang is suspected of misusing $374 million raised in four rounds after the IPO. According to analysts at Hindenburg Research, the company spent $103 million of this amount to buy shares of the underwriter AMTD Group with a dubious reputation. Another $21 million went to pay off loans raised by a relative of Ebang founder Dong Hu. Read more in an earlier article https://hindenburgresearch.com/Ebang/

It is the first time if my memory serves me that I see this mining company "Ebang", but what caught my attention in this article despite the fact that the whole article is very interesting was the part in which it says that Ebang founder Dong Hu paid $ 21 million in loans contracted by your relative... I wonder what business or what kind of project the relative is doing that needed $ 21 million and who was going to grant him a $ 21 million loan knowing that he would not be able to pay. this story is similar to so many stories that happen in my country, practically Is tradition that kind of things in my country

[bbc.reporter]

@Slow death. I shake my head. I would not be shocked if the relative was has received the $21 million was really Dong Hu himself hehehe. It would also not be shocking if there was really no loan to be paid hehe.