The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired EHang Holdings Limited (“EHang” or the “Company”) (NASDAQ: EH) securities from December 12, 2019 through February 16, 2021, inclusive (the “Class Period”). Investors have until April 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On February 16, 2021, analyst Wolfpack Research published a research report entitled “EHang: A Stock Promotion Destined to Crash and Burn.” Citing “extensive evidence” including “behind-the-scenes photographs, recorded phone calls, and videos of on-site visits to EH’s various facilities,” the report alleged that EHang is “an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts with a customer [Shanghai Kunxiang Intelligent Technology Co., Ltd.] who appears to us to be more interested in helping inflate the value of its investment in EH…than about buying its products.” Wolfpack Research also noted that “in just 14 months as a publicly traded company, EH’s PR team has put out 50 press releases…However, EH’s constant stream of press releases are easily proven untrue.” Finally, the report alleged that Wolfpack Research “obtained Chinese court records which show that EH’s ADRs may already be in serious jeopardy due to legal issues in China.”
On this news, the Company’s share price fell $77.79, or approximately 62.7%, to close at $46.30 per share on February 16, 2021, thereby injuring investors.
The lawsuit filed in this class action 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 that: (1) the Company’s purported regulatory approvals in Europe and North America for its EH216 were for use as a drone, and not for carrying passengers; (2) its relationship with its purported primary customer is a sham; (3) EHang has only collected on a fraction of its reported sales since its ADS began trading on NASDAQ in December 2019; (4) the Company’s manufacturing facilities were practically empty and lacked evidence of advanced manufacturing equipment or employees; and (5) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
If you purchased or otherwise acquired EHang securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.