HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Kandi Applied sciences Group (KNDI) Traders to Contact Its Attorneys Now, Agency Investigating Attainable Securities Fraud

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HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Kandi Technologies Group (KNDI) Investors to Contact Its Attorneys Now, Firm Investigating Possible Securities Fraud

December 07, 2020 12:13 PM ET

Legal Newswire POWERED BY LAW.COM

Hagens Berman calls on Kandi Technologies Group, Inc. Investors to file their losses now. The law firm is investigating possible violations of the Securities Act.

Visit: www.hbsslaw.com/investor-fraud/KNDI
Contact an attorney now: [email protected]
844-916-0895

Investigation by Kandi Technologies Group, Inc. (KNDI)::

The investigation focuses on whether Kandi tampered with his financial statements, including overvaluing revenues.

In the past few quarters, Kandi has touted its sales and revenue growth as well as the battery swap program and assured investors that the financial statements will be presented fairly in all material matters relating to Kandi’s financial position, operating results and cash flow.

But investors began to learn the truth November 30, 2020when Hindenburg Research released a damning, lengthy forensic report based on on-site inspections at Kandi’s factories and customer sites in Kandi China, Interviews with over a dozen former employees and review of numerous process documents and internal public records.

According to Hindenburg, Kandi has implemented a “brazen program” to “forge revenue through counterfeit sales to unnamed affiliates.” Hindenburg reported that (1) it debunked Kandi’s top customers, finding that nearly 64% of Kandi’s sales in the past twelve months were to unnamed related parties, and (2) the company’s largest customer, 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 and that “[t]The company has consistently posted revenue it can’t collect, a classic indicator of fake revenue. “

This news caused the price of Kandi shares to decline.

“We are focusing on, among other things, investor losses and whether Kandi committed fraud in revenue recognition,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.

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. Call for more information Reed Kathrein at the 844-916-0895 or E-Mail [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.

Contact:
Reed Kathrein844-916-0895

Url:
http://hbsslaw.com

Contact information:

Reed Kathrein, 844-916-0895

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