ACM Research, Inc.
Lead Plaintiff Deadline: 02/19/2021
SUMMARY OF CASE:
A securities class action has been filed against ACM Research, Inc. (ACMR) on behalf of all those who purchased or otherwise acquired ACM securities between March 6, 2019 through October 7, 2020. This case has been filed in the USDC – N.D.CA.
The Complaint alleges that ACM, together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. The Company markets and sells its products under the Ultra C brand name through direct sales force and third-party representatives.
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s revenue and profits had been diverted to undisclosed related parties; (ii) accordingly, the Company had materially overstated its revenues and profits; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On October 8, 2020, analyst J Capital Research (“J Capital”) published a report concerning ACM, in which J Capital concluded that ACM “is a fraud, over-reporting both revenue and profit.” The report cited, among other things, J Capital’s visits to “sites in China, Korea, and California” and “more than 40 interviews.” J Capital asserted that “[w]hat real profit the company has is apparently being siphoned off to related parties.” The J Capital report concluded that ACM’s revenue was overstated by 15-20% and claimed to have “evidence that undisclosed related parties are diverting revenue and profit from the company.”
On this news, ACM’s stock price fell $1.09 per share, or 1.52%, to close at $70.79 per share on October 8, 2020.
As a result of defendants’ wrongful acts and omissions, and the decline in the price of ACM common shares detailed herein, Plaintiff and other members of the Class (as defined below) have suffered significant losses and damages.