Canaan investors may receive additional information about the case by clicking the link "Submit Your Information" above.
Canaan designs, manufactures and sells bitcoin mining machines, primarily in the Peoples Republic of China.
The Class Period commences on February 10, 2021, when Canaan issued a press release claiming that Canaan’s “revenue visibility has improved substantially in 2021 as a result of attaining purchase orders totaling more than 100,000 units of bitcoin mining machines from customers in North America. Many of those purchase orders were placed with prepayment and will likely occupy [Canaan]’s current manufacturing capacity entirely for the full year of 2021 and beyond.”
Throughout the Class Period, the defendants concealed that due to ongoing supply chain disruptions and the introduction of Canaan’s next-generation A12 series bitcoin mining machines, Canaan’s fourth quarter 2020 sales had declined more than 93% year-over-year compared to its fourth quarter 2019 sales and more than 93% quarter-over-quarter compared to its third quarter 2020 sales.
According to the complaint, on April 12, 2021, before the opening of trading, Canaan issued a press release disclosing its actual fourth quarter 2020 and fiscal year 2020 financial results for the period ended December 31, 2020, including a 93% year-over-year decrease in computing power sold and net revenues for the quarter.
Following this news, the market price of Canaan ADRs fell from their close of $18.67 per ADR on April 9, 2021 to close at $13.14 per ADR on April 12, 2021, a decline of nearly 30%.
The complaint alleges that, throughout the Class Period, the defendants concealed from the investing public that: (1) Canaan had experienced significant ongoing supply chain disruptions during the fourth quarter 2020; (2) the introduction of Canaan’s next-generation A12 series bitcoin mining machines had cannibalized sales of the older product offerings during the fourth quarter 2020; (3) as a result of the foregoing, Canaan’s fourth quarter 2020 sales and sales revenues had declined dramatically; and (4) as a result of the foregoing, Canaan was not on track to achieve the strong financial prospects it had led the market to believe.
If you are a member of the class described above, you may no later than June 14, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.