SAN FRANCISCO, CA / ACCESSWIRE / January 18, 2021 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
NASDAQ:KNDI Investors Click Here.
NYSE:NAK Investors Click Here.
NYSE:SWI Investors Click Here.
Kandi Technologies Group, Inc. (KNDI) Securities Fraud Class Action:
The complaint centers on whether Kandi manipulated its financial statements, including overstating revenues.
More specifically, according to the complaint (1) Kandi artificially inflated reported revenues through undisclosed related party transactions, and (2) most of Kandi's sales during the past year were to undisclosed related parties, indicating the lack of arms-length transactions.
But investors began to learn the truth, according to the complaint, on Nov. 30, 2020, when Hindenburg Research published a scathing lengthy forensic report based on on-the-ground inspections at Kandi's factories and customer locations in China, interviews with over a dozen former employees, and review of numerous litigation documents and internal public records.
According to Hindenburg, Kandi engaged in a "brazen scheme" to "falsify revenue using fake sales to undisclosed affiliates." Hindenburg reported (1) it unmasked Kandi's top customers and found that almost 64% of Kandi's last twelve months sales have been to undisclosed related parties, and (2) the company's largest customer, representing about 55% of Kandi's last twelve months sales, shares a phone number with a Kandi subsidiary and a Kandi executive. Hindenburg further concludes Kandi's financials corroborate its concerns, noting that "[t]he company has consistently booked revenue it cannot collect, a classic hallmark of fake revenue."
This news drove the price of Kandi shares crashing lower.
"We're focused on, among other things, investor losses and proving Kandi engaged in revenue recognition fraud," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Kandi investor, click here to discuss your legal rights with Hagens Berman.
Northern Dynasty Minerals Ltd. (NAK) Securities Fraud Class Action:
The lawsuit alleges Northern Dynasty and senior executives misled investors about the viability of the company's proposed Pebble Project, a large mining project in Alaska.
In past quarters, Northern Dynasty repeatedly touted its progress in obtaining the necessary permitting for the Pebble Project. The company and senior management also repeatedly assured investors that the Pebble Project design included a substantially reduced development footprint and meaningful new environmental safeguards and, as a result, would likely receive necessary permits from federal, state and local regulatory agencies.
Investors began to learn the truth through a series of partial disclosures beginning on Aug. 24, 2020, when the U.S. Army announced the Pebble Project would significantly degrade the environment, result in significant adverse effects on the aquatic system or human environment, and as proposed "cannot be permitted." This news sent the price of Northern Dynasty shares crashing lower.
On Sept. 21, 2020, the Environmental Investigation Agency released recordings of conversations between Northern Dynasty senior executives and EIA investigators revealing the company's plans to expand the Pebble Project mine operations from 20 years to 180 - 200 years and to expand it geographically.
Finally, on Nov. 25, 2020, Northern Dynasty announced the U.S. Army Corps. of Engineers rejected its Pebble Project permit application under the Clean Water Act, finding the project "is not in the public interest." This news drove the price of Northern Dynasty lower again.
"We're focused on, among other things, investor losses and proving that Northern Dynasty and its senior management intentionally misled investors and manipulated the permitting process to achieve personal compensation for having done so," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Northern Dynasty investor, click here to discuss your legal rights with Hagens Berman.
SolarWinds Corporation (SWI) Securities Fraud Class Action:
The complaint alleges that throughout the Class Period, Defendants misrepresented and concealed that: (1) since mid-2020, SolarWinds' Orion monitoring products had a vulnerability that allowed hackers to compromise the server upon which the products ran; (2) SolarWinds' update server had an easily accessible password; and (3) consequently, SolarWinds' customers, including the Federal Government, Microsoft, Cisco, and Nvidia, were vulnerable to hacks.
Investors allegedly began to learn the truth on Dec. 13, 2020 when Reuters reported Russian hackers had infiltrated the U.S. Treasury and Commerce departments' systems by tampering with SolarWinds updates.
Then, on Dec. 14, 2020 SolarWinds confirmed the vulnerability was inserted in its Orion monitoring products and existed in updates released between March and June 2020.
On Dec. 15, 2020, Reuters reported that (1) a security researcher alerted SolarWinds last year that anyone could access the company's update server by using the password "solarwinds123," and (2) a cyber security expert noticed that even days after SolarWinds knew their software was compromised the malicious updates were still available for download.
Significantly, shortly before these events unfolded and caused SolarWinds shares to crater, two investors controlling a majority of SolarWinds' board of directors sold $285 million of SolarWinds shares.
"We're focused on proving that SolarWinds knew about the security vulnerabilities before disclosing them," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a SolarWinds investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Kandi, Northern Dynasty, and/or SolarWinds 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 KNDI@hbsslaw.com, NAK@hbsslaw.com, and/or SWI@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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