SAN FRANCISCO, April 10, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges EHang Holdings Limited (NASDAQ: EH) investors with significant losses to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
EHang Holdings Limited (EH) Securities Litigation:
The Complaint alleges that throughout the Class Period, Defendants misrepresented and concealed that: (i) E-Hang’s purported regulatory approvals in Europe and North American for its EH216 were for use as a drone, and not for carrying passengers; (ii) its relationship with its purported primary customer, Kunxiang, is a sham; (iii) EHang has only collected on a fraction of its reported sales since its ADS began trading on NASDAQ in December 2019; and (iv) the Company’s manufacturing facilities were practically empty and lacked evidence of advanced manufacturing equipment or employees.
Investors allegedly learned the truth on February 16, 2021, when analyst Wolfpack Research issued a scathing report about the company. Wolfpack Research contends that Kunxiang has entered into sham contracts to benefit EH’s stock price. Wolfpack Research also alleges that EH has exaggerated revenues by reporting sales for which it cannot collect. Wolfpack Research further avers that EH makes false claims about regulatory approvals the company has purportedly received, misleadingly suggesting the company has commercial approval for its products.
On this news, the price of EHang’s shares dropped $77.79 per share (or 62.7%) in one trading day.
“We’re focused on investor losses and proving EH lied about its revenues, customers and regulatory approvals,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an EH investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding EH should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EHang@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895