SAN FRANCISCO, Dec 13, 2020 (GLOBE NEWSWIRE) – Hagens Berman calls upon Kandi Technologies Group, Inc. (NASDAQ: KNDI) Investors to file their losses now. A securities fraud class lawsuit has been filed and certain investors may have valuable claims.
School lesson: March 15, 2019 – November 27, 2020
Deadline of the main plaintiff: February 9, 2021
Contact an attorney now: [email protected]
Kandi Technologies Group, Inc. (KNDI) class action against securities fraud::
The complaint focuses on whether Kandi tampered with his financial statements, including excessive revenue.
Specifically, according to the complaint, (1) Kandi artificially increased reported revenue from undisclosed related party transactions, and (2) most of Kandi’s sales in the past year were to undisclosed related parties, reflecting the lack of arm’s length transactions indicates.
According to the complaint, investors learned the truth on November 30, 2020 when Hindenburg Research released a damning, lengthy forensic report based on on-site inspections of Kandi’s factories and customer sites in China’s dozen former employees and review of numerous litigation documents and internal public records.
According to Hindenburg, Kandi has implemented a “brazen program” to “fake revenue through counterfeit sales to unnamed affiliates”. Hindenburg reported having (1) debunked Kandi’s top customers, discovering that nearly 64% of Kandi’s sales in the past twelve months were to unnamed related parties, and (2) the largest customer of the The company, which accounts for about 55% of Kandi’s sales in the past twelve months, shares a phone number with a Kandi subsidiary and a Kandi manager. Hindenburg also concludes that Kandi’s financial data reinforces his concerns, noting that “[t]The company has consistently posted revenue it can’t collect, a classic indicator of fake revenue. “
This news sent the price of Kandi shares down.
“Among other things, we are focusing on investor losses and proving that Kandi is involved in revenue recognition fraud,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a Kandi investor, click here to discuss your legal rights with Hagens Berman.
Whistleblower: Individuals with nonpublic information about Kandi should consider their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities across the country and eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
Reed Kathrein, 844-916-0895