SAN FRANCISCO, April 15, 2021 (GLOBE NEWSWIRE) – Hagens Berman calls on Canaan Inc. (NASDAQ: CAN) Investors with significant losses can file their losses now. A securities class action lawsuit has been filed and certain investors may have valuable claims.
School lesson: February. 10, 2021 – Apr. 9, 2021
Deadline of the main plaintiff: June 14, 2021
Contact an attorney now: [email protected]
Fight against fraud in Canaan Inc. (NASDAQ: CAN) securities:
The complaint focuses on what Canaan said about the Bitcoin mining equipment business.
According to the complaint, over the past several months, Canaan has falsely touted a significant improvement in its sales visibility, ability to more accurately forecast sales, and the receipt of larger orders for its Bitcoin mining machines. As recently as April 9, 2021, Canaan’s CEO assured investors that the global shortage of chips used in its devices had not negatively affected the company.
However, on April 12, 2021, Canaan reported dire financial results for the fourth quarter and fiscal 2020. The company blamed the supply chain disruptions, reporting that compute power sold in the fourth quarter of 2020 fell 93% year over year and quarter over quarter. Canaan also reported that total computing power sold for fiscal 2020 was down 37% year over year. During the company’s earnings conference call that morning, CEO Nangeng Zhang admitted, contrary to earlier statements, that Canaan had indeed encountered a serious shortage of chip supplies.
That news drove Canaan American Depositary Shares down nearly 30% that day.
“We’re focusing on investor losses and proving that Canaan deliberately and falsely convinced investors of its projected earnings and isolation from chip shortages,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a Canaan investor and are experiencing significant losses or have knowledge that could aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblower: Individuals with nonpublic information about Canaan 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
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Reed Kathrein, 844-916-0895