HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Updates EBIX, EBON, GOEV Investors on Securities Fraud Lawsuits, Encourages Investors with Losses to Contact the Firm
SAN FRANCISCO, CA / ACCESSWIRE / April 16, 2021 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
EBIX Investors Click Here.
EBON Investors Click Here.
GOEV Investors Click Here.
Ebix, Inc. (NASDAQ:EBIX) Securities Fraud Class Action:
Class Period: Nov. 9, 2020 - Feb. 19, 2021
Lead Plaintiff Deadline: April 23, 2021
Visit:www.hbsslaw.com/cases/EBIX
Contact An Attorney Now:EBIX@hbsslaw.com
844-916-0895
The complaint alleges that, throughout the Class Period, Defendants misrepresented and concealed that: (1) there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix's gift card business in India during 4Q 2020; (2) that there was a material weakness in Company's internal controls over the gift or prepaid revenue transaction cycle; and (3) that the Company's independent auditor, RSM, was reasonably likely to resign over disagreements with Ebix regarding $30 million that had been transferred into a commingled trust account of Ebix's outside legal counsel.
Investors allegedly began to learn the truth on Feb. 19, 2021 when RSM abruptly resigned, stating that that "despite repeated inquiries" RSM was unable to obtain sufficient audit evidence to "evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020, including whether such transactions have been properly accounted for and disclosed in the financial statements subject to the Audit." These "unusual transactions" concerned the company's gift card business in India.
In addition, RSM and Ebix reportedly disagreed over whether $30 million transferred to a comingled trust account of Ebix's outside counsel should still be classified as cash on Ebix's balance sheet, even though those funds were outside Ebix's direct control.
On this news, the Company's share price fell as much as $20.24, or 40%, in a single trading day.
Most recently, on Mar. 8, 2021, Ebix announced it has retained KG Somani & Co. as its new auditor, that it would not file its annual report until Apr. 20, 2021, and that Board-appointed consultants and outside legal counsel are continuing "to evaluate the payment solutions business."
"We're focused on investors' losses and proving Ebix insiders cooked the company's books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Ebix shares and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Ebang International Holdings (NASDAQ:EBON) Securities Class Action:
Class Period: June 26, 2020 - Apr. 5, 2021
Lead Plaintiff Deadline: June 7, 2021
Visit:www.hbsslaw.com/investor-fraud/EBON
Contact An Attorney Now:EBON@hbsslaw.com
844-916-0895
The complaint focuses on the accuracy of Ebang's statements concerning its use of capital raised from investors and its claim to be a leading manufacturer of bitcoin mining machines.
More specifically, over the past year, Ebang raised approximately $374 million from investors in public offerings and represented it would use these proceeds to "further expand our operations" in cryptocurrency mining, exchange platforms, and general corporate purposes.
These statements were brought into question on Apr. 6, 2021, when analyst Hindenburg Research published a scathing report entitled "Ebang: Yet Another Crypto ‘China Hustle' Absconding With U.S. Investor Cash."
According to Hindenburg, the company directed much of the cash out of the company through a series of opaque deals with entities linked to Ebang's Chairman/CEO and its underwriter. Specifically, Hindenburg concludes the company directed (1) $103 million into bond purchases linked to its underwriter which has a track record of fraud allegations levied against it, and (2) $21 million to a relative of its Chairman/CEO coincident with raising that amount from investors.
Hindenburg also concludes Ebang is not a leading bitcoin mining machine producer, only sold a pittance compared to other large Chinese producers, and is slated for a 97% decline in such sales for FY 2020.
In response, the price of Ebang shares declined sharply.
"We're focused on investors' losses and whether Ebang lied to investors about its true operations and use of capital," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Ebang 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.
Canoo Inc. (NASDAQ:GOEV) Securities Fraud Class Action:
Class Period: Aug. 18, 2020 - Mar. 29, 2021
Lead Plaintiff Deadline: June 1, 2021
Visit:www.hbsslaw.com/investor-fraud/GOEV
Contact An Attorney Now:GOEV@hbsslaw.com
844-916-0895
The complaint alleges Canoo misled investors before and after going public through a SPAC closing on Dec. 21, 2020.
Specifically, Defendants repeatedly touted a three-pronged strategy to generate revenue and growth: (i) an engineering services segment; (ii) the sales of subscriptions of vehicles to consumers; and (iii) the sale of vehicles to other businesses. Canoo also emphasized its agreements with established OEMs, including with Hyundai for the co-development of a future EV platform
In truth, defendants concealed that Canoo (1) had decreased its focus on its plan to sell vehicles to consumers through a subscription model; (2) would de-emphasize its engineering services business; and (3) did not have partnerships with OEMs and no longer engaged in the previously announced partnership with Hyundai.
On Mar. 29, 2021, the truth emerged when Canoo abruptly announced its CFO was being replaced, that it would deemphasize its engineering services business, would no longer focus on subscription sales to consumers, and try to make and sell its own vehicles to commercial operators. Moreover, on a call with investors, Canoo's Chairman characterized senior management's statements concerning the company's partnerships as "aggressive" and that "they weren't at our standard of representation to the public markets."
In response to this news, analyst Roth Capital downgraded the company's shares from buy to neutral buy and slashed its price target, and the price of Canoo shares crashed.
"We're focused on investors' losses and proving defendants intentionally misrepresented the viability of Canoo's business model and business partnerships," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Canoo 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 Ebix, Ebang, and/or Canoo 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 EBIX@hbsslaw.com, EBON@hbsslaw.com, and/or GOEV@hbsslaw.com.
About Hagens Berman
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.
Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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