SAN FRANCISCO, June 26, 2020 /PRNewswire/ -- Hagens Berman urges investors in Ideanomics, Inc. (NASDAQ: IDEX) to submit their losses now. The firm is investigating possible securities fraud, and certain investors may have valuable claims.
Before June 26, 2020
Contact An Attorney Now:
Ideanomics (IDEX) Investigation:
The investigation centers on the veracity of Ideanomics' positive statements concerning its performance and outlook.
In past quarters, Ideanomics has promoted its electric vehicle business, even issuing press releases throughout mid-June 2020, announcing five material contracts for the sale of its electric vehicles.
But on June 25, 2020, research firm J. Capital published a scathing report about the company, claiming Ideanomics had fabricated the five electronic vehicle contracts. According to the report, "[o]n June 23 and 24 [J. Capital] spoke with representatives from four of the five 'buyers,'" "[a]ll four denied there were contracts," and "[o]ne of them went so far as to tell our staff member that the IDEX press release is 'fake news.'"
The same day, a separate research firm, Hindenburg Research, tweeted that Ideanomics "is an aggregious and obvious fraud." Hindenburg cited evidence that Ideanomics "doctored photos in its PR to suggest it owns/operates" a facility "to drive its stock price up." Hindenburg further asserted that it had an investigator who visited Ideanomics' "supposed MEG sales center," and that the "facility is actually operated by almost 100 sales groups," none of whom had "heard of [Ideanomics] or MEG." Furthermore, Hindenburg stated that it had its "investigator call five of [Ideanomics'] purported customers that are helping drive its supposed [electric vehicle] business," and that "[n]one of them were aware of Ideanomics and none were able to confirm doing business with" Ideanomics.
Then, on June 26, 2020, Hindenburg published a report concluding "the company is engaged in flagrant securities fraud and the stock will wind up in the pennies or halted by regulators."
In response, the price of Ideanomics shares have crashed lower.
"We're focused on investors' losses and whether Ideanomics intentionally misrepresented its prospects to investors," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Ideanomics 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 IDEX@hbsslaw.com.mailto:
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and 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
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SOURCE Hagens Berman Sobol Shapiro LLP