Ebang International Holdings Inc. (NASDAQ: EBON) stock plunged by 0.7% at the last trading close while the EBON stock price continues to decline by 4.47% in the pre-market trading session. Ebang International Holdings Inc. is a blockchain technology firm that specializes in application-specific integrated circuit (ASIC) chip design. It has now become a major bitcoin mining machine manufacturer in the international market, with consistent access to wafer foundry capacity, thanks to years of industry experience and expertise in ASIC chip design.
What is happening?
A securities fraud class action lawsuit has been lodged against Ebang International Holdings on behalf of those who bought or purchased Ebang securities between June 26, 2020, and April 5, 2021, inclusive, according to the law firm of Kessler Topaz Meltzer & Check, LLP.
- Rather than being used to expand Ebang’s activities, the proceeds from its public sales were directed to a low-yield, long-term bond underwriter, and associated parties.
- Ebang’s revenues were dwindling, and the company had exaggerated recorded sales by selling faulty units.
- Owing to claims of embezzlement of investor money and inflated revenue numbers, Ebang’s efforts to go public in Hong Kong failed.
- Ebang’s ostensible cryptocurrency trading was nothing more than the buying of an off-the-shelf cryptocurrency exchange.
- The defendants’ optimistic claims about Ebang’s company, activities, and prospects were materially false and/or lacking a fair basis as a result of the preceding.
About Kessler Topaz Meltzer & Check, LLP
In-state and federal courts around the nation, the firm prosecutes class cases alleging stock fraud, infringement of fiduciary obligations, and other violations of state and federal legislation. Kessler Topaz Meltzer & Check, LLP is a leader in corporate governance reform, having recovered billions of dollars for retail and private investors in the US and around the world.