Please complete this form relating to your transactions for Ebang International Holdings Inc. (NASDAQ: EBON) securities between June 26, 2020 and April 5, 2021, inclusive (the “Class Period”).
You may also contact James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; or toll free at (844) 887-9500; or you may submit your information via email at firstname.lastname@example.org; or you may click here to print a PDF of this form.
Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired Ebang International Holdings Inc. (“Ebang”) (NASDAQ: EBON) securities between June 26, 2020 and April 5, 2021, inclusive (the “Class Period”).
Ebang is a leading application-specific integrated circuit chip design company and a leading manufacturer of Bitcoin mining machines. The Class Period commences on June 26, 2020, when Ebang filed its prospectus in connection with its initial public offering (the “IPO”). On October 23, 2020, Ebang filed its registration statement on a Form F-1 for an offering of Class A ordinary shares and warrants to purchase Class A ordinary shares. It was subsequently amended on October 26, 2020, November 6, 2020, and November 16, 2020 before Ebang filed a related prospectus on a Form 424b4 on November 20, 2020.
According to the complaint, on April 6, 2021, before the market opened, Hindenburg Research published a report alleging, among other things, that Ebang was directing proceeds from its IPO last year into a “series of opaque deals with insiders and questionable counterparties.” According to the report, Ebang raised $21 million in November 2020, claiming the proceeds would go “primarily for development,” and that instead the funds were directed to repay related-party loans to a relative of Ebang’s Chief Executive Officer, Dong Hu. The report also noted that Ebang’s earlier efforts to go public on the Hong Kong Stock Exchange had failed due to widespread media coverage of a sales inflation scheme with Yindou, a Chinese peer-to-peer online lending platform that defrauded 20,000 retail investors in 2018, with $655 million “vanish[ing] into thin air.” Following this news, Ebang’s share price fell $0.82, or approximately 13%, to close at $5.53 per share on April 6, 2021.
Then, on April 6, 2021, after the market closed, Ebang issued a statement stating that, though it believed the report “contain[ed] many errors, unsupported speculations and inaccurate interpretations of events,” the “Board, together with its Audit Committee, intends to further review and examine the allegations and misinformation therein and will take whatever necessary and appropriate actions may be required to protect the interest of its shareholders.” Following this news, Ebang’s share price fell $0.12, or 2.17%, to close at $5.41 per share on April 7, 2021. The stock price continued to decline over the next trading session by $0.38, or 7%, to close at $5.03 per share on April 8, 2021.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) the proceeds from Ebang’s public offerings had been directed to low yield, long term bonds to an underwriter and to related parties rather than used to develop Ebang’s operations; (2) Ebang’s sales were declining, and Ebang had inflated reported sales, including through the sale of defective units; (3) Ebang’s attempts to go public in Hong Kong had failed due to allegations of embezzling investor funds and inflated sales figures; (4) Ebang’s purported cryptocurrency exchange was merely the purchase of an out-of-the-box crypto exchange; and (5) as a result of the foregoing, the defendants’ positive statements about Ebang’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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.