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SAN FRANCISCO, CA / ACCESSWIRE / June 11, 2021 / Hagens Berman urges Canaan Inc. (NASDAQ:CAN) investors with significant losses to submit your losses now. A securities class action has been filed and certain investors may have valuable claims.
Canaan Inc. (NASDAQ:CAN) Securities Fraud Action:
The complaint is focused on Canaan's statements about its bitcoin mining machine business.
According to the complaint, in past months, Canaan has falsely touted substantial improvement in its revenue visibility, its ability to more precisely forecast revenues, and its receipt of larger orders for its bitcoin mining machines. As recently as Apr. 9, 2021, Canaan's CEO reportedly assured investors that the global shortage of chips used in its equipment did not negatively impact the company.
But, on Apr. 12, 2021, Canaan reported horrible Q4 and FY 2020 financial results. Blaming supply chain disruptions, the company reported Q4 2020 total computing power sold tanked 93% year-over-year and quarter-over-quarter. Canaan also reported FY 2020 total computing power sold tanked 37% year-over-year. During the company's earnings conference call that morning CEO Nangeng Zhang admitted, contrary to earlier statements, that Canaan had in fact run into a severe shortage of chip supply.
This news sent the price of Canaan American Depositary Shares crashing nearly 30% lower that day.
"We're focused on investors' losses and proving Canaan intentionally and falsely assured investors of its forecasted revenues and its insulation from the chip shortage," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Canaan investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Canaan should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CAN@hbsslaw.com.
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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