Lead Plaintiff Deadline: 05/31/2021
SUMMARY OF CASE:
A securities class action has been filed against SOS Ltd. (SOS) on behalf all persons and entities who purchased or otherwise acquired SOS Limited American depository shares (“ADS”) between July 22, 2020 through February 22, 2021. This case has been filed in the USDC – NJ.
The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) SOS had misrepresented the true nature, location, and/or existence of at least one of the principal executive offices listed in its SEC filings; (ii) HY and FXK were either undisclosed related parties and/or entities fabricated by the Company; (iii) the Company had misrepresented the type and/or existence of the mining rigs that it claimed to have purchased; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 26, 2021, Hindenburg Research (“Hindenburg”) and Culper Research released commentary on SOS, claiming that the Company was an intricate “pump and dump” scheme that used fake addresses and doctored photos of crypto mining rigs to create an illusion of success. The analysts noted, for example, that SOS’s SEC filings listed a hotel room as the Company’s headquarters. The analysts also questioned whether SOS had actually purchased mining rigs that it claimed to own, as the entity from which SOS purportedly bought the mining rigs appeared to be a fake shell company. The analysts further alleged that the photos SOS had published of their purported “mining rigs” were phony. Culper noted that photographs of SOS’s “miners” did not depict the A10 Pro machines that the Company claimed to own and instead appeared to show different devices altogether. Hindenburg, for its part, found that the original images from SOS’s website actually belonged to another company.
On this news, SOS’s ADS price fell $1.27 per share, or 21.03%, to close at $4.77 per ADS on February 26, 2021.