SAN FRANCISCO, 1st December 2020 / PRNewswire / – Hagens Berman urges investors in Kandi Technologies Group, Inc. (NASDAQ: KNDI) to file their losses now. The law firm is investigating possible violations of the Securities Act.
Contact an attorney now: [email protected]
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 respects with regard 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 having (1) debunked Kandi’s top customers and found 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 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 has committed fraud in revenue recognition,” he 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.
Whistleblowers: Individuals with nonpublic information about Kandi should review their options to help with the investigation or use the SEC 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 844-916-0895 or by email [email protected].
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SOURCE Hagens Berman Sobol Shapiro LLP