Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Canaan Inc. ("Canaan" or the "Company") (NASDAQ: CAN) securities pursuant and/or traceable to the Company's registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with its November 20, 2019 initial public offering ("IPO"). Canaan investors have until May 4, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Canaan investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
In November 2019, Canaan completed its IPO, issuing 10 million American Depositary Shares ("ADSs") at $9.00 per share.
On February 20, 2020, after market close, Marcus Aurelius published a report entitled "Canaan Fodder" alleging, among other things, that Canaan was engaged in several undisclosed related-party transactions that lacked economic substance.
On this news, the Canaan’s ADSs fell $0.39 per ADS, or nearly 7%, to close at $5.32 per share on February 20, 2020, thereby injuring investors. Since the IPO, Canaan’s stock has traded as low as $5.72 per share, significantly below the $9 offering price.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the purported "strategic cooperation" with Hangzhou Grandshores Weicheng Technology Co., Ltd. was actually a transaction with a related party; (2) that the company's financial health was worse than what was actually reported; (3) that the company had recently removed numerous distributors from its website just prior to the IPO, many of which were small or suspicious businesses; and (4) that several of the Company's largest Chinese clients in prior years were clients who were not in the Bitcoin mining industry and, thus, would likely not be repeat customers.
If you purchased Canaan securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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