SAN DIEGO & ZHEJIANG PROVINCE, China--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Hebron Technology Co., Ltd. (NASDAQ: HEBT) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between April 24, 2020 and June 3, 2020. Hebron researches, develops, manufactures, and installs valves, pumps, pipe fittings, and other products in the People's Republic of China.
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Hebron Technology Co., Ltd. (HEBT) Accused of Misleading Shareholders
According to the complaint, on April 24, 2020, Hebron stated in the Related Party Transactions section of its annual report for 2019 that "[its] officers and directors have not been involved in any transactions with [Hebron] or any of [its] affiliates or associates which are required to be disclosed" other than a few limited transaction. In the same report, the Company acknowledged that its internal control over financial reporting was ineffective; however, did not mention specific issues regarding its disclosure controls. Then, on May 22, 2020, Hebron announced that it was acquiring Nami Holding (Cayman) Co., Ltd. Less than a month later, on June 3, 2020, Grizzly Research issued a report alleging that Hebron is an "insider enrichment scheme without economic basis.” The report cited dubious transactions including the "sham" acquisition of undisclosed related party Beijing Hengpu as well as the $26 million undisclosed related party transaction of Nami Holding Company, which was 99.99% owned by Hebron's controlling shareholder. On this news, the stock declined 55%, closing at $11.78 per share on June 4, 2020.
If you purchased Hebron Technology Co., Ltd. (HEBT) securities between April 24, 2020 and June 3, 2020, you have until August 10, 2020, to ask the court to be appointed lead plaintiff for the class.
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