Market Overview

Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against of Canaan Inc. (CAN)

Share:

LOS ANGELES, May 01, 2020 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming May 4, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of Canaan Inc. ("Canaan" or the "Company") (NASDAQ:CAN) investors who purchased securities pursuant and/or traceable to the Company's initial public offering ("IPO") commenced on or about November 20, 2019.

If you suffered a loss on your Canaan investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email shareholders@glancylaw.com or visit our website at www.glancylaw.com to learn more about your rights.  

In November 2019, Canaan completed its initial public offering ("IPO"), issuing 10 million American Depositary Shares ("ADSs"), at $9.00 per share.

On February 20, 2020, after market closed, 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.

Follow us for updates on LinkedIn, Twitter, or Facebook.

If you purchased or otherwise acquired Canaan securities pursuant and/or traceable to the IPO,  you may move the Court no later than May 4, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.  If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com

Primary Logo

View Comments and Join the Discussion!