Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Ebang, 3D Systems, Amdocs, and Champignon Brands and Encourages Investors to Contact the Firm
NEW YORK, May 26, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Ebang International Holdings, Inc. (NASDAQ: EBON), 3D Systems Corporation (NYSE: DDD), Amdocs Limited (NASDAQ: DOX), and Champignon Brands, Inc. (Other OTC: SHRMF). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Ebang International Holdings, Inc. (NASDAQ: EBON)
Class Period: June 26, 2020 and April 5, 2021
Lead Plaintiff Deadline: June 7, 2021
On April 6, 2021, Hindenburg Research published a report alleging, among other things, that Ebang is directing proceeds from its IPO last year into a “series of opaque deals with insiders and questionable counterparties.” According to the report, Ebang raised $21 million in November 2020, claiming the proceeds would go “primarily for development,” and that instead the funds were directed to repay related-party loans to a relative of the Ebang’s Chief Executive Officer, Dong Hu. The report also noted that Ebang’s earlier efforts to go public on the Hong Kong Stock Exchange had failed due to widespread media coverage of a sales inflation scheme with Yindou, a Chinese peer-to-peer online lending platform that defrauded 20,000 retail investors in 2018, with $655 million “vanish[ing] into thin air.”
On this news, the Company’s share price fell $0.82, or approximately 13%, to close at $5.53 per share on April 6, 2021.
On April 6, 2021, after the market closed, Ebang issued a statement stating that, though it believed the report “contain[ed] many errors, unsupported speculations and inaccurate interpretations of events,” the “Board, together with its Audit Committee, intends to further review and examine the allegations and misinformation therein and will take whatever necessary and appropriate actions may be required to protect the interest of its shareholders.”
On this news, the Company’s share price fell $0.12, or 2.17%, to close at $5.41 per share on April 7, 2021. The stock price continued to decline over the next trading session by $0.38, or 7%, to close at $5.03 per share on April 8, 2021.
The complaint, filed on April 8, 2021, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that the proceeds from Ebang’s public offerings had been directed to an low yield, long term bonds to an underwriter and to related parties rather than used to develop the Company’s operations; (2) that Ebang’s sales were declining and the Company had inflated reported sales, including through the sale of defective units; (3) that Ebang’s attempts to go public in Hong Kong had failed due to allegations of embezzling investor funds and inflated sales figures; (4) that Ebang’s purported cryptocurrency exchange was merely the purchase of an out-of-the-box crypto exchange; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 2, 2021, 3D Systems filed a NT-10-K with the SEC, stating that their 10- K filing would be delayed.
On this news, 3D Systems’s stock price fell $7.62 per share, or more than 19.6%, from closing at $38.79 per share on March 1, 2021 to close at $31.17 per share on March 2, 2021, damaging investors.
The complaint, filed on May 9, 2021, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) 3D Systems lacked proper internal controls over financial reporting; and (2) as a result, 3D Systems’ public statements were materially false and/or misleading at all relevant times.
Amdocs, through its global subsidiaries, provides software and services to communications, cable and satellite, entertainment, and media industry service providers worldwide. Historically, the Company’s largest percentage of revenues come from its North American business, mostly the U.S., particularly from large customers including, among others, AT&T Inc. (“AT&T”).
On March 31, 2021, Jehoshaphat Research (“Jehoshaphat”) published a short-seller report addressing Amdocs, which alleged that Amdocs overstated its profits, evidenced by steady parent profits despite declining subsidiary profits; that there was a concerning pattern of reputable auditors resigning, only to be replaced by “scandal-plagued or tiny shops”; that Amdocs “window-dressed” its balance sheets to keep its large borrowing a secret, namely by paying down its debt just prior to the end of each quarter, therefore showing a debt-free balance sheet on that day, before reborrowing the money shortly thereafter; and that all of the foregoing was corroborated by former employees and direct competitors of the Company, who noted that Amdocs was losing AT&T as a customer, as well as a former American Amdocs executive, who stated that the Company’s “US business was declining at a rate of [around] 7% annually . . . but then we would see the company [publish results that] say North America is stable.”
On this news, Amdocs’ ordinary share price fell $9.19 per share, or 11.58%, to close at $70.15 per share on March 31, 2021.
The complaint, filed on April 9, 2021, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Amdocs overstated its profits, cash, and liquidity, while understating its debt; (ii) Amdocs concealed its large borrowing; (iii) while Amdocs’ reported results showed that its North American business was stable, that business was actually deteriorating annually, in part because the Company was losing AT&T as a customer; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 17, 2021, Champignon issued a press release entitled “Champignon Brands to Restate Financial Statements and MD&A has Prepared CSE Listing Statement”.
On this news, Champignon’s stock price fell 10% to close at $0.687 per share on February 17, 2021.
The complaint, filed on April 10, 2021, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Champignon had undisclosed material weaknesses and insufficient financial controls; (2) Champignon’s previously issued financial statements were false and unreliable; (3) Champignon’s earlier reported financial statements would need to be restated; (4) Champignon’s acquisitions involved an undisclosed related party; (5) as a result of the foregoing and subsequent reporting delays and issues, the British Columbia Securities Commission would suspend Champignon’s from trading; and (6) as a result, defendants’ statements about Champignon’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
