NEW YORK, March 2, 2020 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Canaan Inc. ("Canaan" or the "Company") (NASDAQ: CAN). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Canaan and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
In November 2019, Canaan completed its initial public offering ("IPO"), selling 10 million American Depositary Shares ("ADSs") priced at $9.00 per share. Then, on February 20, 2020, an investment analyst publishing under the pseudonym Marcus Aurelius published a short report entitled "Canaan Fodder." The report alleged, among other things, that Canaan was engaged in several undisclosed related-party transactions that lacked economic substance, including the sale of $150 million worth of equipment to a small Hong Kong company with an undisclosed relationship with a significant Canaan shareholder.
On this news, Canaan's ADS price fell $0.39 per share, or 6.83%, to close at $5.32 per share on February 20, 2020. Since the IPO, Canaan's ADSs have traded as low as $4.40 per share, representing a decline of more than 51% from the offering price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP