BOSTON, Feb. 21, 2020 (GLOBE NEWSWIRE) — Canaan Inc. (NASDAQ: CAN) and certain of its officers and directors are being investigated by Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, for possible violations of the federal securities laws.
Canaan, a company specializing in Blockchain servers and ASIC microprocessor solutions for use in bitcoin mining, completed its initial public offering in November 2019. Then, on February 20, 2020, after markets closed, an investment analyst operating under the pseudonym Marcus Aurelius published a short report entitled “Canaan Fodder” claiming, among other things, that Canaan was engaged in several undisclosed related-party transactions that lacked economic substance.
For example, the report alleges that just one month before Canaan’s IPO, a tiny Hong Kong company named Grandshores announced that it had agreed to purchase up to $150 Million worth of the company’s equipment in 2020, even though Grandshores’ entire market cap is only $50 million and it reports having only $16 million in cash on hand. Purportedly, the Chairman of Grandshores owns 9.7% of Canaan’s outstanding shares through entities he controls — yet this relationship is not mentioned anywhere in Canaan’s SEC filings.
On this news, the Canaan’s share priced dropped significantly in after-market trading.
If you purchased or otherwise acquired Canaan securities and have questions about your legal rights, or possess information relevant to this matter, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at [email protected] or by visiting https://shareholder.law/cases/?case=can.
Block & Leviton LLP was ranked 4th among all securities litigation firms by the Institutional Shareholder Services group for recovery of investor losses in 2017. The firm represents both the nation’s largest institutional investors and retail investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for investors.
This notice may constitute attorney advertising.
BLOCK & LEVITON LLP
(617) 398-5600 phone
260 Franklin Street, Suite 1860
Boston, MA 02110