NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court of Southern District of New York on behalf of those who acquired Ideanomics, Inc. f/k/a Seven Stars Group, Inc. f/k/a Wecast Network Inc. (“Ideanomics” or the “Company”) (NASDAQ: IDEX) securities during the period from May 15, 2017 to November 13, 2018 (the “Class Period”). Investors have until September 17, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint alleges that Ideanomics failed to disclose to investors that: (i) costs associated with building out Ideanomics’ U.S. infrastructure and hiring its new executive team were negatively impacting the Company’s bottom line performance; (ii) as a result, Ideanomics was highly unlikely to meet its 2018 EBITDA guidance; and (iii) Ideanomics’ margins in its oil trading and consumer electronics businesses were too low for those businesses to remain viable.
On November 14, 2018, Ideanomics issued a press release disclosing that the Company “intend[ed] to phase out [its] oil trading and consumer electronics businesses, with the intention to fully divest these assets in the near future.” Ideanomics also disclosed that it did “not anticipate meeting [its] EBITDA guidance of $35 million for fiscal year 2018,” citing “costs associated with building out [its] U.S. infrastructure and hiring [its] new executive team.” On this news, Ideanomics’ share price fell $1.59 per share, or 48.77%, to close at $1.67 on November 14, 2018.
If you acquired Ideanomics securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.