LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Canaan Inc. (“Canaan” or the “Company”) (NASDAQ: CAN) investors who purchased securities pursuant and/or traceable to the Company's initial public offering (“IPO”) commenced on or about November 20, 2019. Canaan investors have until May 4, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
In November 2019, Canaan completed its initial public offering (“IPO”), issuing 10 million American Depositary Shares (“ADSs”), at $9.00 per share.
On February 20, 2020, after market closed, Marcus Aurelius published a report entitled “Canaan Fodder” alleging, among other things, that Canaan was engaged in several undisclosed related-party transactions that lacked economic substance.
On this news, the Canaan’s ADSs fell $0.39 per ADS, or nearly 7%, to close at $5.32 per share on February 20, 2020, thereby injuring investors. Since the IPO, Canaan’s stock has traded as low as $5.72 per share, significantly below the $9 offering price.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the purported "strategic cooperation" with Hangzhou Grandshores Weicheng Technology Co., Ltd. was actually a transaction with a related party; (2) that the company's financial health was worse than what was actually reported; (3) that the company had recently removed numerous distributors from its website just prior to the IPO, many of which were small or suspicious businesses; and (4) that several of the Company's largest Chinese clients in prior years were clients who were not in the Bitcoin mining industry and, thus, would likely not be repeat customers.
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If you purchased Canaan securities during the Class Period, you may move the Court no later than May 4, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Canaan securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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