Ebang International Holdings, Inc.
Lead Plaintiff Deadline: 06/07/2021
SUMMARY OF CASE:
A securities class action has been filed against Ebang International Holdings, Inc. (EBON) on behalf of persons and entities that purchased or otherwise acquired Ebang securities between June 26, 2020 through April 5, 2021. This case has been filed in the USDC – S.D.N.Y.
The Complaint alleges that on April 6, 2021, analyst Hindenburg Research published a report alleging the Chinese cryptocurrency company is directing proceeds from its IPO last year into a “series of opaque deals with insiders and questionable counterparties.” According to the report, Ebang raised $21 million in November 2020, claiming the proceeds would go “primarily for development,” and that allegedly $21 million was directed to repay related-party loans to a relative of the company’s Chairman/CEO Dong Hu. The report also noted that Ebang’s earlier efforts to go public on the Hong Kong Stock Exchange failed due to widespread media coverage of its relationship with Yindou, a massive Chinese peer-to-peer online lending scheme that defrauded 20,000 retail investors in 2018, with $655 million “vanish(ing) into thin air”.
On this news, the Company’s share price fell $0.82, or approximately 13%, to close at $5.53 per share on April 6, 2021, thereby injuring investors.