SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Eastern District of New York on behalf of purchasers of Kandi Technologies Group, Inc. (NASDAQ: KNDI) securities between March 15, 2019 and November 27, 2020, inclusive (the “Class Period”). The case is captioned Valdés v. Kandi Technologies Group, Inc., No. 20-cv-06042, and is assigned to Judge LaShann DeArcy Hall. The Kandi Technologies class action lawsuit charges Kandi Technologies and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Kandi Technologies securities during the Class Period to seek appointment as lead plaintiff in the Kandi Technologies class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Kandi Technologies class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Kandi Technologies class action lawsuit. An investor’s ability to share in any potential future recovery of the Kandi Technologies class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Kandi Technologies class action lawsuit or have questions concerning your rights regarding the Kandi Technologies class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com. Lead plaintiff motions for the Kandi Technologies class action lawsuit must be filed with the court no later than February 9, 2021.
Headquartered in the People’s Republic of China, Kandi Technologies, through its subsidiaries, designs, develops, manufactures, and commercializes electric vehicle (“EV”) products and parts and off-road vehicles in China and internationally.
The Kandi Technologies class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Kandi Technologies artificially inflated its reported revenues through undisclosed related-party transactions or otherwise had relationships with key customers that indicated those customers did not have an arm’s-length relationship with Kandi Technologies; (ii) the majority of Kandi Technologies’ sales in the past year had been to undisclosed related parties and/or parties with such a close relationship and history with Kandi Technologies that it cast doubt on the arm’s-length nature of their relationship; (iii) all the foregoing, once revealed, was foreseeably likely to cast doubt on the validity of Kandi Technologies’ reported revenues and, in turn, have a foreseeable negative impact on Kandi Technologies’ reputation and valuation; and (iv) as a result, Kandi Technologies’ public statements were materially false and misleading at all relevant times.
On November 30, 2020, Hindenburg Research published a report entitled “Kandi: How This China-Based NASDAQ-Listed Company Used Fake Sales, EV Hype to Nab $160 Million From U.S. Investors.” Citing “extensive on-the-ground inspection at Kandi [Technologies’] factories and customer locations in China, interviews with over a dozen former employees and business partners, and review of numerous litigation documents and international public records,” Hindenburg asserted that almost 64% of Kandi Technologies’ sales over the year had been to undisclosed related parties. Hindenburg also alleged that “[Kandi Technologies] ha[d] consistently booked revenue it cannot collect, a classic hallmark of fake revenue.” On this news, Kandi Technologies’ stock price fell more than 28%, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
