SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Ideanomics, Inc. (NASDAQ: IDEX) has filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between May 15, 2017 and November 13, 2018. Ideanomics operates a financial technology and asset digitization services company. Ideanomics was previously known as Seven Stars Cloud Group, Inc. until it changed its name in August 2018.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/ideanomics-inc/
Ideanomics Accused of Misleading Investors
According to the complaint, in January 2017, Ideanomics acquired two Hong Kong companies. Following these acquisitions and throughout the relevant period, Ideanomics issued a series of press releases and filings with the SEC that touted the company's revenue growth, mainly attributing the large increase to the acquisitions and its Wecast Services Group. However, these misleading statements failed to disclose that margins in its consumer electronics and oil trading businesses were actually too low to remain viable and Ideanomics was very unlikely to meet its 2018 EBITDA guidance. This material information was finally revealed in a November 2018 press release that stated Ideanomics' intention to "phase out [its] oil trading and consumer electronics businesses" and that it "[did] not anticipate meeting [its] EBITDA guidance." On this news, Ideanomics' stock price fell $1.59, or 48.77%. The stock has yet to recover and currently trades at $1.78.
Ideanomics Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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